By Rohit Sharma
The top 7 Indian cities have collectively seen average apartment sizes shrink by nearly 17% between 2014 and 2018. However, this has not been a uniform phenomenon. Among the top cities, MMR topped the list with a 27% average decrease in apartment sizes – from 960 sq. ft in 2014 to700 sq. ft. in 2018, according to data showed by ANAROCK Property Consultants.
Bangalore saw the least decline in average property size at around 12% in five years. The current average apartment size in Bangalore is 1,260 sq. ft. Interestingly, prior to 2017, the average sizes in Bangalore fluctuated by merely 1-2% y-o-y; in 2018, they dropped by over 12% against the preceding year.
Hyderabad currently has the highest average property sizes about 1,600 sq. ft., Property buyers in Hyderabad have traditionally preferred large-sized homes, which dovetails favourably with the fact that property prices here have been more realistic than in most other cities.
“The increasing preference for smaller homes by what is arguably India’s most solvent age demographic contrasts sharply with the onus on larger flats in previous years. It took developers quite a while to understand and accept it – one of the main reasons why there is so much unsold mid-range housing inventory on the market today”, said Anuj Puri, Chairman, ANAROCK Property Consultants.
The maximum reduction in average property sizes was seen in the budget housing segment priced < Rs 40 lakhs. The average size of homes priced below Rs 40 lakh was 750 sq. ft. in 2014, and it reduced by 23% in 2018.
Mid-segment housing priced between Rs 40 – 80 lakhs saw the least size reduction of 17% – from 1,150 sq. ft. in 2014 to around 950 sq. ft. in 2018.
The reduction in flat size has invariably been achieved by the elimination of extra balconies – and in many cases all balconies – and better apartment designs that allow more efficient use of smaller spaces.