Real Estate developers build bigger apartments to meet growing demand

13 Jun 2023 CW Team

Among these cities, Delhi-NCR experienced the most significant growth, with the average flat size increasing by 50 per cent to 1,700 square feet in the first quarter of 2023 compared to 1,130 square feet in January-March of the previous year. Anarock highlights that developers in Delhi-NCR are closely monitoring demand and introducing larger homes in response.

In Kolkata, flat sizes grew by 44 per cent, reaching 1,150 square feet in Q1 2023 compared to 800 square feet in the corresponding period of the previous year. Hyderabad witnessed a 29 per cent increase, with the average flat size rising to 2,200 square feet from 1,700 square feet in Q1 2022. Pune experienced a 16 per cent yearly increase, reaching 1,013 square feet in Q1 2023 from 877 square feet in the first quarter of the previous year.

Bengaluru observed an 8 per cent rise in average flat sizes, reaching approximately 1,300 square feet in January-March 2023 compared to 1,200 square feet in the previous year. Chennai, on the other hand, saw a 6 per cent decline in average flat sizes, which decreased to 1,175 square feet in Q1 2023 from 1,250 square feet in the year-ago period. Mumbai Metropolitan Region (MMR) experienced a 5 per cent reduction, with average flat sizes decreasing from 783 square feet in Q1 2022 to 743 square feet in January-March this year.

Anarock Chairman Anuj Puri stated that prior to the COVID-19 pandemic, apartment sizes were decreasing annually to cater to the demand for compact homes, driven by affordability concerns and millennials' preference for low-maintenance residences. However, in 2020, there was an abrupt shift in buyer preferences due to the work-from-home (WFH) and study-from-home culture, leading to an increase in flat sizes for the first time in four years.

Despite the rising property prices in 2023, the demand for larger homes remains strong, according to the consultant. Anarock reports that the average flat sizes in the top seven cities have grown by 7 per cent over the past five years, reaching 1,225 square feet in Q1 2023 from 1,150 square feet in 2018. In the last five years, MMR is the only city where average flat sizes have decreased, dropping from 932 square feet in 2018 to 743 square feet in January-March this year. Delhi-NCR exhibited the highest growth in average flat size over the same period, increasing from 1,250 square feet in 2018 to 1,700 square feet.

According to property consultant Anarock, real estate developers are responding to consumer demand by constructing larger apartments. In the period of January to March this year, the average size of flats launched across seven cities increased by 5 per cent compared to the previous year. The data reveals that the average size of flats in these seven major cities rose from 1,170 square feet in the same period last year to 1,225 square feet this year. Among these cities, Delhi-NCR experienced the most significant growth, with the average flat size increasing by 50 per cent to 1,700 square feet in the first quarter of 2023 compared to 1,130 square feet in January-March of the previous year. Anarock highlights that developers in Delhi-NCR are closely monitoring demand and introducing larger homes in response. In Kolkata, flat sizes grew by 44 per cent, reaching 1,150 square feet in Q1 2023 compared to 800 square feet in the corresponding period of the previous year. Hyderabad witnessed a 29 per cent increase, with the average flat size rising to 2,200 square feet from 1,700 square feet in Q1 2022. Pune experienced a 16 per cent yearly increase, reaching 1,013 square feet in Q1 2023 from 877 square feet in the first quarter of the previous year. Bengaluru observed an 8 per cent rise in average flat sizes, reaching approximately 1,300 square feet in January-March 2023 compared to 1,200 square feet in the previous year. Chennai, on the other hand, saw a 6 per cent decline in average flat sizes, which decreased to 1,175 square feet in Q1 2023 from 1,250 square feet in the year-ago period. Mumbai Metropolitan Region (MMR) experienced a 5 per cent reduction, with average flat sizes decreasing from 783 square feet in Q1 2022 to 743 square feet in January-March this year. Anarock Chairman Anuj Puri stated that prior to the COVID-19 pandemic, apartment sizes were decreasing annually to cater to the demand for compact homes, driven by affordability concerns and millennials' preference for low-maintenance residences. However, in 2020, there was an abrupt shift in buyer preferences due to the work-from-home (WFH) and study-from-home culture, leading to an increase in flat sizes for the first time in four years. Despite the rising property prices in 2023, the demand for larger homes remains strong, according to the consultant. Anarock reports that the average flat sizes in the top seven cities have grown by 7 per cent over the past five years, reaching 1,225 square feet in Q1 2023 from 1,150 square feet in 2018. In the last five years, MMR is the only city where average flat sizes have decreased, dropping from 932 square feet in 2018 to 743 square feet in January-March this year. Delhi-NCR exhibited the highest growth in average flat size over the same period, increasing from 1,250 square feet in 2018 to 1,700 square feet.

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