Making sense of supply in bigger sized apartments
Hi all, I moved to Hyderabad a year back and I've been observing the real estate market since then. I've noticed that there are so many projects coming up which have larger sized apartments (i.e. bigger than the regular 3 bhk) as a primary offering. It ranges from 2.5k sq ft, to 3k-4k sq ft, and even upto 5k or 6k sq ft per unit. And each project has at least a few hundred of them. Some have thousand or more. Neopolis is full of these types of units. I can see this type of product in other areas too.
I've noticed that these projects are somehow marketed as "luxury" although I don't agree with that label considering very high FSI in these projects. Sure there are bells & whistles like abnormal ceiling height, bespoke amenities, Xyz lakh sq ft club house etc.
My key point here is w.r.t. demand & supply. I know Hyd used to be a very affordable market until a few years back so absorption of these units was not such a big issue. However with prices touching ₹10k - ₹14k range, the eventual ticket price for such units is pretty high (min ₹4 cr, goes upto ₹10 cr or more). My question is - are these units selling the way they do so as to match the supply? And what kind of buyer profile is buying these in large numbers?
I personally don't think these are for the IT/White collar salaried crowd. These are probably for start-up or business owners, but even then how many are there in Hyd with 1) that kind of money, and 2) having the need to move into an apartment (successful ones must be living in their homes with owned land).
As a regular person who is trying to make sense of the market, I'm trying to understand if there's genuine demand for such units? Or is this a clear case of oversupply? Your thoughts are welcome.