Despite a significant increase in home prices across India’s major cities, larger homes continue to attract buyers. Data from Anarock Research indicates that the average apartment size across the top 7 cities grew by 32 percent over the past five years, from 109.5 sqm in 2019 to 141.5 sqm in the first half of the current year (H1 2024).
In 2023, the average apartment size in the top 7 cities was 132 square meters, indicating a 7% increase in the last six months alone.
An in-depth analysis of data from the top 7 cities shows that NCR has seen the largest growth (a staggering 96%) in average apartment size over the past five years – from 111.5 sqm in 2019 to 232.5 sqm in H1 2024.
Key findings:
- The average apartment size has increased by 32% over the past five years, from 1,145 square feet in 2019 to 1,513 square feet in the first half of 2024.
- NCR leads the pack: With a staggering 96% increase in average apartment size, NCR has witnessed a dramatic shift towards luxury apartments.
- Hyderabad and MMR: While Hyderabad saw a notable increase, MMR (Mumbai Metropolitan Region) recorded the lowest growth.
- Luxury segment dominance: NCR’s new launches were dominated by luxury houses, which accounted for 77% of total supply in H1 2024.
Factors driving the trend:
Changing lifestylesThe pandemic-induced work-from-home trend has increased the demand for larger spaces.
Increase in disposable income:Growing wealth has allowed buyers to invest in larger homes.
Developer Response: Property developers are meeting this demand by offering more luxury apartments.
“This significant increase in the average apartment size in NCR is largely due to the surge in new supply of luxury apartments over the last one year. Developers here are responding to the increased demand for spacious luxury homes with an adequate supply,” said Santhosh Kumar, Vice Chairman, ANAROCK Group.
This is significant, considering that previously affordable housing dominated the NCR supply. In fact, the supply of the affordable segment in NCR has been steadily declining over the past few years.
“As expected, MMR saw the lowest growth in average apartment size over this five-year period,” said Santhosh Kumar. “The average apartment size in MMR increased from 784 sq ft in 2019 to 825 sq ft in H1 2024, a mere 5%. In this five-year period, 2020 alone saw a remarkable 21% year-on-year increase in the region’s average apartment size compared to 2019. From 2020, the average size here was the highest in 2022, at 840 sq ft. It fell by 5% in 2023 compared to the previous year.”
Among the top 7 cities, NCR surpassed Hyderabad to record the highest average apartment size of 2,450 sq ft in H1 2024. In Hyderabad, it was 2,010 sq ft.
The average apartment sizes in the other major southern cities (Chennai and Bengaluru) are 1,450 sq ft and 1,630 sq ft respectively in H1 2024.
The average apartment size in Kolkata is 102.5 sq m, while in Pune it is 102.5 sq m. While five-year trends indicate a significant increase in apartment size across cities due to the pandemic-specific demand profile, the half-year increase highlights this continued consumer preference, even as life is returning to normal and prices are increasing across cities.
Apart from seeing the largest 96% increase in average apartment size in the last five years, NCR has also seen the largest increase in the last six months. They increased by 30%, from 1,890 sq ft at the end of 2023 to 2,450 sq ft in the first half of 2024, essentially due to the increase in new supply in the luxury segment in this period. Of the approximately 24,300 units launched in NCR in the first half of 2024,
First published: August 12, 2024 | 14:57 IS
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