Demand for bigger homes rises in metro cities, Anarock report
Hyderabad has the highest average flat size at approx. 2,200 sq. ft. in Q1 2023, followed by NCR with approx. 1,700 sq. ft
Hyderabad: Despite the rise in property rates in 2023, the demand for bigger homes among buyers has continued across major cities in the country. With sudden emphasis on Work From Home (WFH), study-from-home culture, flat sizes began increasing for the first time in four years, latest report from Anarock real-estate firm has indicated.
The average flat sizes in fresh supply hitting the top 7 cities, which included Hyderabad, Bengaluru, NCR Delhi, Pune, MMR Mumbai, Kolkata and Chennai grew by 7 percent in the last five years from approximately 1,150 sq. ft. in 2018 to approx. 1,225 sq. ft. in Q1 2023. In 2022, the average flat size in these cities stood at 1,185 sq. ft., and at 1,170 sq. ft in 2021, Anarock report said.
“MMR (Mumbai) is the only city where average flat sizes reduced in the last five years – from 932 sq. ft. in 2018 to 743 sq. ft. in Q1 2023,” says Anuj Puri, Chairman, Anarock Group.
Hyderabad has the highest average flat size at approx. 2,200 sq. ft. in Q1 2023, followed by NCR with approx. 1,700 sq. ft, the press release said. The NCR also saw the highest growth in average flat size in the last five years from approx. 1,250 sq. ft. in 2018 to approx. 1,700 sq. ft. in Q1 2023. Developers in NCR are closely tracking demand and launching bigger homes in this region.
In 2023, property prices are heading north but the demand for bigger homes continues. Q1 2023 saw average apartment sizes in the top 7 cities increase by approx. 7% since 2018, with MMR the only outlier with average home sizes reducing around 20% in the period.
The notable exceptions of MMR and Chennai are certainly interesting. A perception among developers that there is currently sufficient existing supply of larger format homes may be factor. Also, while MMR is hyper-expensive, Chennai is a very cost-sensitive market. In both instances, increasing the supply of smaller, more affordable homes makes sense.
City Level Yearly Trends
• NCR saw average flat size rise 50% – from approx. 1,130 sq. ft. in Q1 2022 to approx. 1,700 sq. ft. in Q1 2023.
• Kolkata saw flat sizes increase by 44% – from a modest 800 sq. ft. in Q1 2022 to 1,150 sq. ft. in Q1 2023.
• Hyderabad saw average flat size increase by 29% in the year – from approx. 1,700 sq. ft. in Q1 2022 to approx. 2,200 sq. ft. in Q1 2023.
• Pune saw a 16% yearly increase – from 877 sq. ft. back in Q1 2022 to 1,013 sq. ft. in Q1 2023.
• Bengaluru saw a 8% yearly jump in avg. flat sizes – from approx. 1,200 sq. ft. in Q1 2022 to approx. 1,300 sq. ft. in Q1 2023.
• Chennai saw avg. flat sizes decrease by 6% – from approx. 1,250 sq. ft. in Q1 2022 to approx. 1,175 sq. ft. in Q1 2023
• MMR saw avg. flat sizes decrease by 5% – from approx. 783 sq. ft. in Q1 2022 to approx. 743 sq. ft. in Q1 2023.
