Despite the increase in property rates in 2023, buyer demand for larger homes has remained consistent across the country’s major cities. According to the latest report from Anarock real-estate firm, with the sudden emphasis on Work From Home (WFH) and study-from-home culture, flat sizes began increasing for the first time in four years.
The average size of new supply flats in the top seven cities were Hyderabad, Bengaluru, NCR Delhi, Pune, and MMR. Mumbai, Kolkata, and Chennai have grown by 7% in the last five years, from approximately 1,150 square feet in 2018 to approximately 1,225 square feet in Q1 2023. Based on the Anarock report, the average flat size in these cities in 2022 stood at 1,185 square feet, up from 1,170 square feet in 2021.
“MMR (Mumbai) 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.
The press release said that Hyderabad has the highest average flat size in Q1 2023, at approximately 2,200 square feet, followed by NCR at approximately 1,700 square feet. The NCR also saw the highest increase in average flat size over the last five years, rising from approximately 1,250 square feet in 2018 to approximately 1,700 square feet in Q1 2023. Developers in the NCR are closely monitoring demand and building larger homes in this area.
Property prices are expected to rise in 2023, but demand for larger homes remains strong. In Q1 2023, average apartment sizes in the top 7 cities increased by about 7% since 2018, with MMR being the only outlier, with average home sizes decreasing by about 20% during the same period.
MMR and Chennai are notable exceptions, to say the least. A developer’s perception that there is currently an adequate supply of larger format homes could be a factor. In addition, while MMR is extremely expensive, Chennai is a very cost-conscious market. Increasing the supply of smaller, more affordable homes makes sense in both cases.
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