Average Flat Sizes In Top 7 Indian Cities Increase: Report
Average flat sizes in fresh supply hitting the top seven cities grew seven per cent in the last five years, indicates Anarock's latest data.
Size continues to matter for Indian homebuyers, even after relative market normalcy has been restored post the Covid-19 pandemic.
People are buying – from approx. 1,150 sq. ft. in 2018 to approx. 1,225 sq. ft. in Q1 2023. In 2022, the average flat size in these cities stood at 1,185 sq. ft., and at 1,170 sq. ft in 2021.
"MMR is the only city where average flat sizes reduced in the last five years - from 932 sq. ft. in 2018 to 743 sq. ft. in Q1 2023," says Anuj Puri, Chairman - Anarock Group. "In these five years, only 2020 saw average flat sizes in MMR see an annual rise of 21 per cent against 2019. Since 2020, homes in the region are shrinking."
Among the top 7 cities, NCR saw the highest growth in average flat size in the last five years – from approx. 1,250 sq. ft. in 2018 to approx. 1,700 sq. ft. in Q1 2023. Developers in NCR are closely tracking demand and launching bigger homes in this region.
• Hyderabad has the highest average flat size at approx. 2,200 sq. ft. in Q1 2023, followed by NCR with approx. 1,700 sq. ft.
• In Chennai and Bengaluru, the average flat sizes stand at approx. 1,175 and 1,300 sq. ft., respectively.
• In Kolkata, average flat size was approx. 1,150 sq. ft.
• In Pune, average flat size clocks in at approx. 1,013 sq. ft.
“Before Covid-19, apartment sizes were shrinking annually to meet the demand for compact homes prevalent then," says Puri. "The central concerns were affordability and millennials’ preference for low-maintenance homes. 2020 saw an abrupt reversal of buyer preferences. With a sudden emphasis on the WFH and study-from-home culture, flat sizes began increasing for the first time in four years.”
In 2023, property prices are heading north but the demand for bigger homes continues. Q1 2023 saw average apartment sizes in the top seven cities increase by approx. 7 per cent since 2018, with MMR being the only outlier with average home sizes reducing around 20 per cent in the period.
The yearly trends of average flat sizes in the top seven cities show that Q1 2023 has seen a 5 per cent annual rise – from approx. 1,170 sq. ft. in Q1 2022 to approx. 1,225 sq. ft. in Q1 2023.
The notable exceptions of MMR and Chennai are certainly interesting. A perception among developers that there is currently sufficient existing supply of larger format homes may be factor. Also, while MMR is hyper-expensive, Chennai is a very cost-sensitive market. In both instances, increasing the supply of smaller, more affordable homes makes sense.
