New Delhi: Indian homebuyers continue to prefer larger flat sizes, a trend seen during the covid-19 pandemic as people started working from home and sought bigger spaces, according to property consultant Anarock.
“Before covid-19, apartment sizes were shrinking annually to meet the demand for compact homes prevalent then,” Anarock Chairman Anuj Puri said. “The central concerns were affordability and millennials‘ preference for low-maintenance homes. 2020 saw an abrupt reversal of buyer preferences.”
The data reveals that the average flat sizes in the top seven cities have witnessed a growth of 7% over the past five years, from approximately 1,150 sq. ft. in 2018 to around 1,225 sq. ft. in Q1 2023. In 2022, the average flat size in these cities stood at 1,185 sq. ft., and in 2021 it was 1,170 sq. ft.
However, Mumbai Metropolitan Region (MMR) stands out as the only city where average flat sizes have decreased in the last five years, declining from 932 sq. ft. in 2018 to 743 sq. ft. in Q1 2023, according to Puri.
He said in the five-year period, only 2020 witnessed an annual increase of 21% in average flat sizes in MMR compared to 2019. Since then, homes in the region have been witnessing a reduction in size.
Among the top seven cities, the National Capital Region (NCR) saw the highest growth in average flat size over the last five years, surging from approximately 1,250 sq. ft. in 2018 to around 1,700 sq. ft. in Q1 2023. Developers in NCR are closely monitoring the demand and launching bigger homes in response.
According to the data, Hyderabad boasts the highest average flat size at around 2,200 sq. ft. in Q1 2023, followed by NCR with approximately 1,700 sq. ft. Chennai and Bengaluru have average flat sizes of around 1,175 sq. ft. and 1,300 sq. ft., respectively. Kolkata’s average flat size stands at around 1,150 sq. ft., while Pune’s average flat size is approximately 1,013 sq. ft.
Despite the upward trend in property prices, the demand for larger homes continues. The first quarter of 2023 witnessed an average increase of approximately 7% in apartment sizes across the top 7 cities since 2018, except for MMR, where the average home sizes reduced by around 20% during the same period.
Analysing the yearly trends at the city level, Q1 2023 saw a 5% annual rise compared to Q1 2022, with NCR leading the growth with a 50% increase, followed by Kolkata with a 44% increase. Hyderabad witnessed a rise of 29%, Pune saw a 16% increase, Bengaluru recorded an 8% jump, while Chennai and MMR witnessed decreases of 6% and 5% respectively.
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Updated: 12 Jun 2023, 12:44 PM IST
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