Illustration: Ajay Mohanty
4 min read Last Updated: August 12, 2024 | 02:57 PM IST
Despite strong housing price growth in major Indian cities, larger homes continue to attract homebuyers. According to data from Anarock Research, the average apartment size in the top seven cities has increased 32% over the past five years, from 1,145 square feet in 2019 to 1,513 square feet in the first half of this year (H1 2024).
By 2023, the average apartment size in the top seven cities will be 1,420 square feet, representing a 7% increase in the past six months alone.
A detailed analysis of the data for the top seven cities reveals that over the last five years, NCR has recorded the highest growth rate in average apartment size (a staggering 96%), increasing from 1,250 sq ft in 2019 to 2,450 sq ft in H1 2024.
Key findings:
Over the past five years, the average apartment size has grown by 32% – from 1,145 sq ft in 2019 to 1,513 sq ft in H1 2024. NCR leads the way. NCR, which saw a staggering 96% increase in average apartment size, has seen a dramatic shift towards luxury apartments. Hyderabad and MMR: Hyderabad saw a notable increase, while MMR (Mumbai Metropolitan Region) recorded the lowest growth. Luxury Segment Dominates: New launches in NCR were dominated by luxury homes, accounting for 77% of the total supply in H1 2024.
Trend drivers:
Changing lifestyles: The work-from-home trend caused by the pandemic has increased the demand for more space.
Increased disposable income: The rise in affluence has enabled buyers to invest in larger homes.
Developer response: Real estate developers are responding to this demand by offering more upscale apartments.
“The significant increase in average apartment size in NCR is primarily due to the increase in new supply of luxury apartments over the past year. Developers in the region are meeting the growing demand for spacious luxury homes with adequate supply,” said Santosh Kumar, vice-chairman, ANAROCK Group.
This is important considering that historically the majority of NCR’s supply has been affordable housing, and in fact, NCR’s affordable housing supply has been steadily declining for the past few years.
“As expected, MMR saw the least growth in average apartment size over the five-year period,” said Santosh Kumar. “MMR’s average apartment size increased from 784 sq ft in 2019 to 825 sq ft in the first half of 2024, but the increase was only 5%. Over the five-year period, 2020 was the only year in which the region’s average apartment size increased by 21% annually compared to 2019. After 2020, the region’s average size will peak at 840 sq ft in 2022 before declining by 5% year-on-year in 2023.”
Among the top seven cities, NCR surpassed Hyderabad to record the highest average apartment size in the first half of 2024 at 2,450 sq ft. In Hyderabad it was 2,010 sq ft.
The average apartment size in other major southern cities Chennai and Bangalore is 1,450 sq ft and 1,630 sq ft, respectively, in the first half of 2024.
The average apartment size in Kolkata is 1,125 sq ft compared to 1,103 sq ft in Pune. While the five-year trend shows a significant increase in apartment size across cities due to the pandemic-specific demand profile, the half-yearly increase highlights continued consumer preferences even as life returns to normalcy and prices rise across cities.
Besides a 96% increase in average flat sizes over the past five years, NCR also recorded the highest increase over the past six months, from 1,890 sq ft at the end of 2023 to 2,450 sq ft in H1 2024, a 30% increase, mainly due to increased new supply in the luxury segment during the period. Of the approximately 24,300 units launched in NCR in H1 2024,
First Published: 12 August 2024 | 02:57 PM IST
