Till last year, Studio Apartments were the hardest hit, as first-time homebuyers rushed on to the bandwagon of buying bigger homes. But then the reality dawned. - the capital cost, the high monthly EMIs, maintenance charges & property taxes.
There is no doubt, bigger is better, but then there are the harsh truths of buying a 2-3 BHK home - starting from the upfront high cost, which for the first time young homebuyer is the first hurdle, a bigger home also entails higher property tax and more maintenance charges, calculated on per square foot.
The young executives want to live near their workplace, but cannot afford high rents or purchase, so they opt for shared accommodations. For this target audience, developers are building projects near city centres and business districts, that comprise smart single unit dwellings also called studio apartments.
Studio apartment is a Western concept that has an open plan ranging typically from 250- 500 sqft area and comes with a kitchenette and a separate bathroom. It gives a flexible layout that can be divided in living/dining and sleeping areas.
Such projects are becoming popular among young families and single working executives as they can now buy a property, which is within their budget, rather than renting. Moreover, considered as hot investment opportunity especially in metro cities, studio apartments are said to have a higher ROI than larger properties due to cost-to-rent ratio. They can also be listed on short-term rental platforms like AirBnB to generate income for investors.
To Buy Or Not To Buy
The upside of a Studio apartment is its small space that translates into lower EMI per month, lower utility bills, taxes and maintenance costs.
The downside of a Studio apartment is also its small space that translates into limited storage, lack of privacy and not being family friendly.
Indeed, living in a Studio apartment is not for everyone. As an investment they definitely hold ground and to live in them will involve - downsizing, decluttering, smart interiors and a change of lifestyle.
