In a major trend reversal in the post COVID-19 pandemic world, ‘bigger is better’ is once again the catch-phrase on the Indian housing market.
Fresh ANAROCK data confirms that average apartment sizes in the top 7 cities have risen by 10% on a yearly basis – to 1,150 sq. ft. in 2020 from 1,050 sq. ft. in 2019.
Past 4-year trends indicate that average apartment sizes were reducing y-o-y since 2016. 2017 saw the maximum yearly decline of 13% in avg. apartment sizes in the top 7 cities against the preceding year – from 1,440 sq. ft. in 2016 to nearly 1,260 sq. ft. in 2017. A fairly sudden change in consumer preferences to the backdrop of COVID-19 exigencies in 2020 first halted, then reversed the ‘honey, I shrunk the flat’ effect.
The average apartment size is still highest in in Hyderabad at 1,750 sq. ft. among the top cities – approx. 2x bigger than that in MMR where, at 932 sq. ft., average sizes continue to be the lowest. MMR nevertheless saw the maximum rise of 21% - from 773 sq. ft. in 2019 to 932 sq. ft. in 2020. Pune came next with a 12% annual increase in average apartment sizes – from 878 sq. ft. in 2019 to 986 sq. ft. in 2020.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “The two main reasons for apartment sizes reducing in previous years were affordability and millennials’ preference for low-maintenance homes. Keen to generate more buyer interest with smaller price-tags, developers whittled down their flat sizes. 2020 saw an almost immediate reversal of buyer preferences. With the accent suddenly being on accommodating the WFH and learn-from-home culture, flat sizes began increasing for the first time in four years.”
Indian developers were quick to catch on that size matters again and the second half of 2020 saw average apartment sizes in the top 7 cities increase by approximately 10%. MMR and Pune, which had the smallest average flat sizes among all top cities, saw the maximum increase in 2020 over the previous year – by 21% and 12% respectively.
While MMR saw the maximum rise of 21% in average flat size, the region continues to have smallest average apartments among all top cities (932 sq. ft.)
Avg. Apartment Sizes (built-up area) in Top 7 Cities: 2019 vs 2020
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.