In past five years, only 2020 saw average flat sizes in MMR an annual rise of 21 per cent against 2019
The average flat size in fresh supply in the top-7 cities grew 7 per cent in the past five years — from about 1,150 sqft in 2018 to around 1,225 sqft in Q1 2023. In 2022, the average flat size in these cities stood at 1,185 sqft, and at 1,170 sqft in 2021, according to a report by Anarock.
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According to the report, Chennai saw average flat sizes decrease by 6 per cent — from about 1,250 sqft in Q1 2022 to around 1,175 sqft in Q1 2023. MMR saw average flat sizes decrease by 5 per cent — from about 783 sqft in Q1 2022 to nearly 743 sqft in Q1 2023.
Anuj Puri, chairman of Anarock Group, said, “MMR is the only city where average flat sizes reduced in the last five years — from 932 sqft in 2018 to 743 sqft in Q1 2023. In these five years, only 2020 saw average flat sizes in MMR an annual rise of 21 per cent against 2019. Since 2020, homes in the region are shrinking.”
According to the report, among the top-7 cities, NCR saw the highest growth in average flat size in the last five years – from about 1,250 sqft in 2018 to nearly 1,700 sqft in Q1 2023. Developers in NCR are closely tracking demand and launching bigger homes in this region.
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Puri also said, “Before COVID-19, apartment sizes were shrinking annually to meet the demand for compact homes prevalent then… The central concerns were affordability and millennials’ preference for low-maintenance homes. 2020 saw an abrupt reversal of buyer preferences. With a sudden emphasis on the WFH and study-from-home culture, flat sizes began increasing for the first time in four years.”
In 2023, property prices are heading north but the demand for bigger homes continues. Q1 2023 saw average apartment sizes in the top 7 cities increase by around 7 per cent since 2018, with MMR the only outlier with average home sizes reducing around 20 per cent in the period.
City Level Yearly Trends
The yearly trends of average flat sizes in the top-7 cities show that Q1 2023 has seen a 5 per cent annual rise – from about 1,170 sqft in Q1 2022 to nearly 1,225 sqft in Q1 2023.
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NCR saw average flat size rise 50 per cent — from about 1,130 sqft in Q1 2022 to around 1,700 sqft in Q1 2023. Kolkata saw flat sizes increase by 44 per cent — from a modest 800 sqft in Q1 2022 to 1,150 sqft in Q1 2023. Hyderabad saw average flat size increase by 29 per cent in the year — from about 1,700 sqft in Q1 2022 to nearly 2,200 sqft in Q1 2023.
Pune saw a 16 per cent yearly increase — from 877 sqft back in Q1 2022 to 1,013 sqft in Q1 2023. Bengaluru saw an 8 per cent yearly jump in average flat sizes – from around 1,200 sqft in Q1 2022 to about 1,300 sqft in Q1 2023.
Chennai saw average flat sizes decrease by 6 per cent — from about 1,250 sqft in Q1 2022 to around 1,175 sqft in Q1 2023. MMR saw average flat sizes decrease by 5 per cent — from about 783 sqft in Q1 2022 to nearly 743 sqft in Q1 2023.
The notable exceptions of MMR and Chennai are certainly interesting. A perception among developers that there is currently sufficient existing supply of larger format homes may be factor. Also, while MMR is hyper-expensive, Chennai is a very cost-sensitive market. In both instances, increasing the supply of smaller, more affordable homes makes sense.
