I have often noticed that larger apartments (3000-3500 sq. ft) are usually 10-15% cheaper than smaller 1200-2000 sq. ft apartments on a per sq. ft. basis. Even though they may be in the same apartment complex. Have others also noticed this? If so, what is the economic logic for this?
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  • Yeah I have noticed this, But I haven't overcome to this criteria.I think that the price rate is the same, But we get a change in the ratio rate.
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  • Originally Posted by bogert
    Yeah I have noticed this, But I haven't overcome to this criteria.I think that the price rate is the same, But we get a change in the ratio rate.


    After googling a bit, I found it may have to do with the cost of construction, which is cheaper on a per sq. ft basis for a larger apartment than a smaller one. This is because there are certain things in an apartment which are absolutely essential, irrespective of whether it is a large or small apartment. For example, every apartment has to have a kitchen or at least one bathroom. These are basically fixed costs which gets spread over more sq. ft for a larger apartment. So the cost of construction per sq. ft goes down for a larger apartment which in turn makes them cheaper in terms of their final sale price.
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  • Originally Posted by stinaikar
    After googling a bit, I found it may have to do with the cost of construction, which is cheaper on a per sq. ft basis for a larger apartment than a smaller one. This is because there are certain things in an apartment which are absolutely essential, irrespective of whether it is a large or small apartment. For example, every apartment has to have a kitchen or at least one bathroom. These are basically fixed costs which gets spread over more sq. ft for a larger apartment. So the cost of construction per sq. ft goes down for a larger apartment which in turn makes them cheaper in terms of their final sale price.


    True, cost is definitely one aspect.

    The other aspect is, a lower rate compared to smaller flat attracts the boundary line people to jump to other side of the fence. You pay 4L extra and you get a significant bigger size flat!! Many people will be tempted to cross over.

    It may not be too practical but still many people thinks that a lower rate will make the TICKET SIZE looks attractive.

    However, it all depends on demand situation.
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