### Larger versus Smaller Apartments

3 Replies926 ViewsLast Reply: 8 years ago

stinaikar

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Started 8 years ago

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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.CommentQuote0Flag
- Originally Posted by bogertYeah 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.CommentQuote0Flag - Originally Posted by stinaikarAfter 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.CommentQuote0Flag