Demand for bigger homes remains steady; average flat size grows by 11% in top 7 cities

The demand for bigger homes remains steady, despite the rising residential prices, shows an Anarock report. As per the Consulting firm, the average flat sizes in India's top seven cities- Mumbai Metropolitan Region, Delhi NCR, Hyderabad, Kolkata, Bengaluru, Chennai and Pune - have grown 11% annually in 2023 to 1,300 sq. ft.

In 2022, the average flat size across the seven cities was 1,175 sq. ft., 1,170 sq. ft. in 2021 and 1,167 sq. ft. in 2020.

Flat size grows

Among the seven cities, NCR saw the highest growth of 37% in average flat size in the last one year. The flat size grew from 1,375 sq. ft. in 2022 to 1,890 sq. ft. in 2023. As per the report, developers in the the region are actively tracking demand and launching larger homes - homebuyer demand is skewed significantly towards luxury apartments, which are primarily defined by bigger sizes.

"North-bound housing prices in the top cities have in no way dispelled the demand for generous living spaces,” said Anuj Puri, Chairman – ANAROCK Group. “The supply of bigger luxury homes increased significantly in 2023. ANAROCK data indicates that more than one lakh units (or approx. 23%) of the total new launches in 2023 were in the luxury category. The demand for bigger-size homes was kick-started by the pandemic, but there are no signs of it waning three years later. Led by an enduring ‘new normal’ in homebuyer preferences, this demand seems eminently sustainable.”

The five year trend also has NCR at the top place of seeing a maximum rise of average flat sizes in 2023 with 51%, followed by Hyderabad with a 35% rise in this period.

"In NCR, the average flat size increased from 1,375 sq. ft. in 2022 to 1,890 sq. ft. in 2023, rising by 37% on a yearly basis. If we consider 5-yearly trends, avg. flat size jumped by 51% from 1,250 sq. ft. in 2019," said Puri.

Meanwhile, Hyderabad has the highest average flat size in 2023 at 2,300 sq. ft., followed by NCR with 1,890 sq. ft. In Hyderabad the highest average flat size grew 30% YOY and 35% with a 5 yearly rise. Meanwhile, the average flat sizes in the city stood at 1,700 sq. ft. in 2019, 1,775 sq. ft. in 2022, and 2,300 sq. ft. in 2023.

The average flat size in Bengaluru stood at 1,484 sq. ft., Bengaluru's average flat size increased by 26% in 2023 and on a 5 yearly basis, the city saw a 16% jump in avg. flat sizes. Meanwhile, Chennai witnessed a 5% rise in average at 1,260 sq.ft., and a 15% 5-yearly rise.

Pune’s average flat size stood at 1,086 sq. ft. in 2023 witnessing a 11% yearly increase. In last five years, the city saw a 19% jump in avg. flat sizes.

Interestingly, Mumbai and Kolkata witnessed a decrease in the average flat size in the last one year. In Mumbai the average flat size decreased to 794 sq. ft. in 2023 from 840 sq. ft. in 2022, witnessing a 5% yearly decline. However, over a 5-year period, avg. sizes in MMR were similar to 2019 at 784 sq. ft

In Kolkata the flat size declined 2%from 1,150 sq. ft. in 2022 to 1,124 sq. ft. in 2023. However, over a 5-year period, avg. flat sizes have risen by 12% in the city.