Witnessing a major housing market trend reversal, cities in Delhi’s surroundings, including Gurugram and Faridabad, are seeing major traction for independent floors post the pandemic. Over 20,000 independent floors are expected to be launched in both the cities in the next one year due to a spike in demand, according to a report by ANAROCK Property Consultants, a real estate firm. Around 4,500 independent floor units have already been launched this year till September in both these cities, said the report.
According to Santhosh Kumar, vice-chairman, ANAROCK Group, there has been a change in buyer preferences due to the pandemic and the Haryana government’s Deen Dayal Jan Awas Yojna scheme.
"Under this scheme, developers can build independent flats up to four floors and sell them individually. Many developers with land banks in these cities are now lining up for a licence to construct independent floor homes. As many as 4,500 independent flats have already been launched in Gurugram and Faridabad in the first three quarters of 2021, accounting for over a 40 per cent share of this period's total supply in these two cities,” he said.
Around 10,970 units across different property types have been launched in Gurugram and Faridabad between January to September, of which 4,500 units are independent floor units, said the report.
Earlier, independent floors were, typically, developed by local developers. However, with changing preferences, bigger developers are now launching even independent floors, apart from apartment complexes.
A major motivator is the fact that the development turnaround time for independent flats is faster than high-rises, providing an opportunity for faster monetisation. Home buyers today are also keen on getting possession of homes quickly. The possession time for independent floors is significantly shorter than for multi-storey apartments.
Builder floors are also gaining popularity because they combine the benefits of both traditional apartments and villas. With one flat typically constructed on a single floor, occupying families have more space and privacy than in high-rise apartments.
Also, money generated from builder floors starts flowing in within one year, while high-rises take at least four years to pay off, Kumar explained.
However, the concept of independent floor homes as a property type is not new in Gurugram and Faridabad. Between 2006 and 2010, these two Haryana cities added nearly 21,300 independent floor units.
The supply of independent floor homes dropped by more than 50 per cent to approximately 10,000 units between 2011 and 2015, when high-rise apartments started gaining prominence. Between 2016 and 2020, the overall new supply of independent floors dropped further by 73 per cent against the preceding period, with just 2,990 new units being added, according to.