High-end clients

Anderson36 · Site Member Joined: 09 Nov 2007 Posts: 1 Mission Points: 0

The majority of builders in the organized sector take pride in the fact that they are catering to the high-end clients. Even so those groups that are catering to the middle-income groups usually do not publicize such projects. A Kochi-based builder who offers apartments for Rs.7 lakhs to Rs.10 lakhs was more eager to announce a new project offering `premium' range of villas rather than talk about the former range. The sky-high prices of the flats are often not due to the apartment size itself, but by the amenities offered by the builders. Often these include, apart from the mandatory lift, generator and security, even an exclusive swimming pool, gym and children's park.

But, the majority of builders operating in the unorganized sector, that is, without gaining membership in any professional body and working in a random manner, are catering more and more to the middle groups then the organized builders who offer quality projects like Kerala apartments. These flats spring up without much advertisement, the sales depending on word-of-mouth.

The high-end builders are making a certain range of `middle group' apartments, but interestingly, these are not targeted at the middle-income groups, but at the same segment of higher end clients that they already have. Like the studio apartments that come up near IT centers such as Kakkanad. The studio apartments are not a budget apartment. It is mainly bought by investors who look for the additional income by way of rent. The studio apartments, usually coming around 700 sq. feet, costs around Rs.7 lakhs to Rs.15 lakhs.

The high-income group is also interested in buying up medium range apartments, again, for an investment. A Rs.25-lakh apartment will fetch only Rs.25,000 as a monthly rental, that too not too frequently. But, a Rs.7-lakh apartment can bring in an assured rental money of Rs.5,000 to Rs.6,000.

So given the steep increase in land prices and construction materials and the price range in which apartments come, many will find their dream of owning a residence of their own beyond their reach in the coming days.