New Apartments Getting Smaller As Developers Make Their Offerings More Affordable

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By Accommodation Times Bureau

GURUGRAM:

The size of the new apartments offered by developers has come down in the range of 15-17 per cent on an average in the last couple of years across the top cities in the country, according to data released today by Square Yards.

“The saleable area for new launches of 2BHK flats in 2017 and 2018 averages 963 sq ft, down from 1130 sq ft offered by developers before that period, translating into a reduction of 15 per cent. The shrinkage in a saleable area of 3BHK offerings has been sharper at 17 per cent. The saleable area for new launches of 3BHK flats in 2017 and 2018 averages 1458 sq ft, slipping from 1754 sq ft in the previous years. The trend of resorting to higher efficiency is seen in the top seven cities of the country- Gurgaon, Bangalore, Chennai, Pune, Kolkata, Mumbai and Noida. Hyderabad, however, has bucked the trend observed in other big cities”, said the company in a statement.

2BHK Saleable Area in Sq Ft 3BHK Saleable Area in Sq Ft
City Name Pre 2017-2018 2017-2018 Period Percentage Change Pre 2017-2018 2017-2018 Period Percentage Change
Bangalore 1198 993 -17% 1839 1586 -14%
Chennai 997 864 -13% 1637 1272 -22%
Gurgaon 1325 1161 -12% 2007 1643 -18%
Hyderabad 1261 1291 2% 1919 1935 1%
Kolkata 988 843 -15% 1426 1360 -5%
Mumbai 1084 809 -25% 1710 1265 -26%
Noida 1114 958 -14% 1698 1393 -18%
Pune 1074 867 -19% 1799 1323 -26%

However, the carpet area offered by developers in both 2BHK, as well as 3BHk flats, is now increasing as a percentage of the saleable area of the apartments. This means that developers are bringing in greater efficiencies in construction despite a reduction in overall saleable area.

“There was a certain degree of asset price mismatch for residential properties in the country which is now being addressed by the developers that are now offering more compact sizes of apartments in most cities in the country, thus making the apartments more affordable. Not only they have reduced the saleable area, but they have also resorted to ingenuity to bring in efficiency in the layout of the flats. This has led to more space being made available at the hands of buyers, thus packing more value for them. The enactment of RERA that sharpens the focus on the carpet area and its definition has had an effect on better efficiency by the developers. We foresee the trend of bringing in space and price optimization to continue in the coming years”, said Tanuj Shori, Founder and CEO, Square Yards.

Among the cities that have witnessed shrinkage, Mumbai has emerged at the top with maximum reduction in sizes. The average saleable area of 2BHK apartments in the pre-2017-18 period was 1084 square feet which came down to just 809 square feet, a fall of 25 per cent or almost a quarter. The average saleable area of 3 BHK property in the city used to be 1710 square feet which have come down to 1265 square feet, a reduction of 26 per cent.

Another Maharashtrian city Pune has seen the second highest fall in sizes of flats. The average saleable area of 2 BHK apartments has come down from 1074 square feet in the pre-2017-2018 period to just 867 square feet in the last couple of years. This translates into a reduction of 19 per cent. The average saleable area of 3 BHK flats has decreased from 1799 square feet to about 1323 square feet, a shrinkage of 26 per cent.

While most of the metros have seen a reduction in the sizes of new launched homes, Hyderabad has emerged as an exception. The average saleable area of both 2BHK and 3BHK apartments have gone up in the city, albeit marginally.







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