According to a research by the real estate firm Anarock Group, house prices will continue to grow in 2023, although there will still be a need for bigger properties.
In the previous five years, the average flat size in India’s seven largest cities has increased by 7%, rising to around 1,225 square feet in Q1 2023 from about 1,150 square feet in 2018. The Mumbai Metropolitan Region (MMR), with a 20% decrease in typical flat sizes, stands out as an outlier.
The average flat size in these cities increased from 1,170 square feet in 2021 to 1,185 square feet in 2022. Delhi National Capital Region (NCR), Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune are the seven cities included in the research.
The only city where average flat sizes decreased over the last five years was Mumbai Metropolitan Region (MMR), where they went from 932 square feet in 2018 to 743 square feet in Q1 2023. Only in 2020 did the average flat size in MMR yearly grow by 21% compared to 2019.
Among the top 7 cities, NCR’s average flat size increased the most in the previous 5 years, from around 1,250 square feet in 2018 to approximately 1,700 square feet in Q1 2023. According to the survey, builders in NCR are actively monitoring demand and introducing larger houses in this area.
At roughly 2,200 square feet, Hyderabad now boasts the greatest average flat size. The average size of an apartment in Delhi NCR is the next-highest at almost 1,700 square feet.
Pune has the lowest average flat size of 1,013 square feet, followed by Chennai and Bengaluru with average flat sizes of around 1,175 and 1,300 square feet, respectively.
Before the COVID-19 epidemic, according to Anuj Puri, chairman of Anarock Group, flat sizes were reducing yearly to meet the demand for small, reasonably priced houses, which was fueled by millennials’ inclination for low-maintenance housing. However, the culture of working from home and studying from home caused a significant change in consumer preferences in 2020, which resulted in a rise in flat sizes. Despite rising real estate costs in 2023, there will still be a need for larger houses, according to the analysis.
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The average size of apartments in the top 7 cities grew by 5% in the first quarter of 2023 compared to the prior year. The biggest increase—50%—was in Delhi NCR, followed by Hyderabad (29%) and Kolkata (44%) in that order. In the NCR, 1,700 square feet is currently the standard flat size.
Pune witnessed a rise of 16%, Bengaluru saw a gain of 8%, while Chennai and MMR saw losses of 6% and 5%, respectively.
Developers believe that the odd fall in flat size in Chennai and MMR is the result of the cities’ present surplus of bigger format dwellings. Additionally, Chennai is a highly price-sensitive market despite MMR’s exorbitant cost. According to the analysis, it makes sense to increase the supply of smaller, more inexpensive houses in both situations.