Average apartment size rises 5% annually in Jan-Mar 2023: Anarock

Real estate developers are building larger apartments to meet consumer demand, with the average size of apartments launched from January to March this year rising 5 percent annually in seven cities, according to real estate consultant Anarock.

According to the data, the average size of apartments in seven major cities increased to 1,225 square feet in January-March this year from 1,170 square feet in the same period last year.

Among seven cities, Delhi-NCR saw average flat volume rise by 50 percent to 1,700 sq ft in the first quarter of 2023 from 1,130 sq ft in January-March last year.

Anark noted that the developers in Delhi NCR are following the demand closely and are launching larger homes in this area.

Kolkata saw apartment sizes increase by 44 per cent to 1,150 sq ft in the first quarter of 2023 from 800 sq ft in the same period last year.

The average apartment size in Hyderabad increased by 29 per cent to 2,200 sq ft in January-March from 1,700 sq ft in the first quarter of 2022.

Pune saw a 16 per cent year-on-year increase to 1,013 sq ft in the first quarter of 2023 from 877 sq ft in the first quarter of last calendar year.

Bengaluru has seen average apartment sizes rise by 8 per cent to around 1,300 sq ft in January-March 2023 from 1,200 sq ft in the same period last year.

The average size of apartments in Chennai fell by 6 per cent to 1,175 sq ft in the first quarter of 2023 from 1,250 sq ft in the same period last year.

The Mumbai Metropolitan Region (MMR) saw average apartment sizes drop by 5 per cent to 743 sq ft in January-March this year from 783 sq ft in the first quarter of 2022.

“Prior to COVID-19, apartment sizes were shrinking annually to meet the demand for compact homes prevalent at the time,” said Anarock President Anuj Puri.

“The main concerns were affordability and millennials’ preference for low-maintenance homes. 2020 saw a surprising reversal in buyer preferences,” Buri added.

He added that with the sudden focus on WFH (work from home) and study-from-home culture, apartment sizes have begun to increase for the first time in four years.

The adviser said property prices are heading north in 2023 but demand for larger homes continues.

According to Anarock, average apartment sizes in new supply hitting the top seven cities grew 7 percent in the past five years to 1,225 square feet in the first quarter of 2023 from 1,150 square feet in 2018.

The average apartment size in these cities was 1,185 square feet last year, 1,170 square feet in 2021, 1,150 square feet in 2020, and 1,050 square feet in 2019.

Anarock said MMR is the only city where average apartment sizes have declined in the past five years — from 932 square feet in 2018 to 743 square feet from January to March this year.

Among the seven largest cities, Delhi-NCR has seen the highest growth in average flat area size in the past five years to 1,700 sq ft from 1,250 sq ft in 2018.