 "Bigger is better, luxury is king: Flat sizes up 96% in Delhi NCR in 5 yrs | Personal Finance")
Illustration: Ajay Mohanty
Despite a significant jump in residential prices across India’s major cities, bigger homes continue to attract homebuyers. Data from Anarock Research indicates that average flat sizes in the top 7 cities grew by 32 per cent in the last five years – from 1,145 sq. ft. in 2019 to 1,513 sq. ft. in the first half of the current year (H1 2024).
In 2023, the average flat size across the top 7 cities was 1,420 sq. ft. – indicating a 7% jump in the last six months alone.
A deep-dive into data from the top 7 cities shows that NCR saw the highest growth – a staggering 96% – in average flat size in the last five years: from 1,250 sq. ft. in 2019 to 2,450 sq. ft. in H1 2024.
Key Findings:
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Average flat size increased by 32% in the last five years: From 1,145 sq ft in 2019 to 1,513 sq ft in H1 2024. -
NCR leads the pack: With a staggering 96% increase in average flat 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 least growth. -
Luxury segment dominance: NCR’s new launches were dominated by luxury homes, accounting for 77% of the total supply in H1 2024.
Factors Driving the Trend:
Changing lifestyles: The pandemic-induced work-from-home trend has increased the demand for larger spaces.
Rising disposable incomes: Growing affluence has enabled buyers to invest in larger homes.
Developer response: Real estate developers are catering to this demand by offering more luxury apartments.
“This significant jump in NCR’s average flat size is largely due to the increased new supply of luxury apartments in the last one year. Developers here are responding to the higher demand for spacious luxury homes with appropriate supply,” said Santhosh Kumar, Vice Chairman – ANAROCK Group.
This is significant, considering that affordable housing previously dominated NCR’s supply. In fact, affordable segment supply in NCR has been declining steadily in the last few years.
“As expected, MMR saw the least growth in the average flat sizes in this five-year period,” said Santhosh Kumar. “The average flat size in MMR rose from 784 sq. ft. in 2019 to 825 sq. ft. in the first half of 2024 – a mere 5%. In this five-year period, only 2020 saw a notable 21% annual rise in the region’s average flat size against 2019. Since 2020, the average size here was the highest in 2022 – at 840 sq. ft. It fell by 5% in 2023 against the preceding year.”
Among the top 7 cities, NCR overtook Hyderabad to record the highest average flat size of 2,450 sq. ft. in H1 2024. In Hyderabad, it was 2,010 sq. ft.
Average flat sizes in the other major southern cities – Chennai and Bengaluru – are 1,450 sq. ft. and 1,630 sq. ft. respectively in H1 2024.
Kolkata’s average flat size stands at 1,125 sq. ft. while in Pune, it is 1,103 sq. ft. While 5-year trends indicate a significant jump in flat sizes across cities because of the pandemic-specific demand profile, the rise on a half-yearly basis highlights this continued consumer preference – despite life returning to normalcy and prices rising across cities.
Besides seeing the highest rise of 96% in average flat size in the last five years, NCR has also recorded the highest rise in the last six months. They rose by 30% – from 1,890 sq. ft. by 2023-end to 2,450 sq. ft. in H1 2024, essentially due to the increased new supply in the luxury segment in this period. Of approx. 24,300 units launched in NCR in H1 2024 ac
First Published: Aug 12 2024 | 2:57 PM IST
