NCR Purchasing Larger Homes, While MMR Flat Sizes Are 5% Smaller: Anarock
Even when some kind of market normality has been restored after the Covid-19 outbreak, size is still important to Indian homebuyers. According to the most recent Anarock statistics, the average size of a new apartment entering the top 7 cities increased by 7% over the last five years, from around 1,150 square feet in 2018 to approximately 1,225 square feet in Q1 2023. The average apartment size in these locations was 1,185 square feet in 2022 and 1,170 square feet in 2021.
According to Anuj Puri, chairman of Anarock Group, “Mumbai Metropolitan Region (MMR) is the only city where average flat sizes have decreased in the last five years – from 932 sq. ft. in 2018 to 743 sq. ft. in Q1 2023.”
“In these five years, only 2020 had an annual increase in MMR average flat widths of 21% compared to 2019. Homes in the area have been becoming smaller since 2020,” Puri remarked.
The National Capital Region (NCR) saw the largest rise in average flat size among the top 7 cities over the last five years, going from around 1,250 square feet in 2018 to over 1,700 square feet in Q1 2023. According to Anarock, NCR developers are actively monitoring demand and introducing larger houses in this area.
According to Puri, apartment sizes were becoming smaller yearly to keep up with the demand for the little residences that were popular at the time.
The millennial generation’s choice for low-maintenance housing and affordability were the key issues. In 2020, buyer tastes abruptly changed. The WFH and study-from-home cultures were suddenly emphasized, and flat sizes started rising for the first time in four years.
Even if real estate costs are rising in 2023, there is still a need for larger houses. The top 7 cities’ average apartment sizes increased by around 7% in Q1 2023 compared to Q1 2018, with MMR being the lone exception, as typical house sizes dropped by almost 20% over that time.
Yearly Trends at the City Level
The average flat size in the top 7 cities has increased annually by 5%, from about 1,170 square feet in Q1 2022 to about 1,225 square feet in Q1 2023, according to yearly trends.
The average flat size in NCR increased by 50% between Q1 2022 and Q1 2023, going from around 1,130 square feet to about 1,700 square feet.
From a modest 800 square feet in Q1 2022 to 1,150 square feet in Q1 2023, flat sizes increased by 44% in Kolkata.
Between Q1 2022 and Q1 2023, Hyderabad’s average flat size increased by 29%, from around 1,700 square feet to about 2,200 square feet.
Pune had a 16% annual growth, going from 877 square feet in Q1 2022 to 1,013 square feet in Q1 2023.
From around 1,200 square feet in Q1 2022 to approximately 1,300 square feet in Q1 2023, the average flat size in Bengaluru increased by 8% annually.
Average flat sizes in Chennai decreased by 6% during the first quarters of 2022 and 2023, from around 1,250 square feet to about 1,175 square feet.
Average flat sizes fell by 5% in MMR, from about 783 square feet in Q1 2022 to around 743 square feet in Q1 2023.
It’s noteworthy to note MMR and Chennai as prominent outliers. Developers’ belief that there is now an adequate supply of bigger format houses may have a role.
Additionally, Chennai is a highly price-sensitive market despite MMR’s exorbitant cost. The research said that it makes sense in both situations to increase the supply of smaller, more affordable dwellings.
