+
Real Estate developers build bigger apartments to meet growing demand
Real Estate

Real Estate developers build bigger apartments to meet growing demand

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.

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.

Next Story
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Next Story
Infrastructure Energy

SC Allows State Tax on Mines, Minerals

Opposition leaders have welcomed the Supreme Court's recent decision permitting states to levy taxes on mines and mineral-bearing lands, as reported. The ruling is seen as a significant victory for state governments seeking greater control and revenue from natural resource extraction within their jurisdictions. The Supreme Court?s decision empowers states to impose taxes on mining operations and mineral-rich lands, which could enhance their revenue streams and enable better management of local resources. This move is particularly important for states with substantial mineral resources, as it a..

Talk to us?