Despite the return to normalcy and a steady uptick in residential prices, the appetite for larger apartments remains unwavering across India’s top seven cities. According to the latest data from ANAROCK, the average size of flats in these metropolises surged by an impressive 11% in 2023, marking a shift towards more expansive living spaces.
In 2022, the average flat size stood at 1,175 square feet, witnessing a notable increase to 1,300 square feet in 2023. To put this in perspective, the sizes in 2021 and 2020 were consistent with 2022 at 1,170 square feet and 1,167 square feet, respectively.
A granular examination of the data exposes a unique trend – while most cities experienced growth, Mumbai Metropolitan Region (MMR) and Kolkata witnessed a decline in average flat sizes by 5% and 2%, respectively, in the past year.
In MMR, the average flat size dwindled from 840 square feet in 2022 to 794 square feet in 2023, marking a 5% annual decrease. However, over the span of five years, the average sizes in MMR remained steady, aligning with 2019 at 784 square feet. Kolkata, too, saw a 2% yearly decline, dropping from 1,150 square feet in 2022 to 1,124 square feet in 2023. Despite this, the city experienced a 12% increase in average flat sizes over the last five years, standing at 1,000 square feet in 2019.
The standout performer in 2023 was the National Capital Region (NCR), boasting an impressive 37% growth in average flat sizes. Developers in NCR are keenly observing market demands, unveiling larger homes to meet the growing appetite for luxury apartments. The average flat size skyrocketed from 1,375 square feet in 2022 to 1,890 square feet in 2023.
Hyderabad emerged as the city with the largest average flat size in 2023, registering at 2,300 square feet, followed closely by NCR with 1,890 square feet. Other southern cities like Chennai and Bengaluru reported average flat sizes of 1,260 and 1,484 square feet, respectively. Pune followed suit with an average flat size of 1,086 square feet in 2023.
Anuj Puri, Chairman of ANAROCK Group, remarked, “North-bound housing prices in the top cities have in no way dispelled the demand for generous living spaces. The supply of bigger luxury homes increased significantly in 2023, with more than one lakh units, approximately 23% of the total new launches, falling into the luxury category. The demand for larger homes, ignited by the pandemic, shows no signs of waning three years later. Fueled by an enduring ‘new normal’ in homebuyer preferences, this demand seems eminently sustainable.”
City Highlights: A Changing Landscape
On a yearly basis, the average flat sizes in the top 7 cities experienced an 11% surge in 2023 compared to 2022. Over the past five years, there has been a substantial 24% rise, with NCR leading the charge with a remarkable 51% increase.
In NCR, the average flat size leaped from 1,375 square feet in 2022 to 1,890 square feet in 2023, marking a 37% yearly growth. Over the five-year period, the average flat size witnessed a remarkable 51% increase from 1,250 square feet in 2019.
Hyderabad displayed a 30% yearly increase in average flat sizes, with a 35% rise over the last five years. The city’s average flat sizes stood at 1,700 square feet in 2019, 1,775 square feet in 2022, and reached 2,300 square feet in 2023.
Bengaluru reported a 26% annual increase, with average flat sizes rising from 1,175 square feet in 2022 to 1,484 square feet in 2023. Over a five-year span, Bengaluru saw a 16% jump, from 1,280 square feet in 2019.
In Pune, average flat sizes increased by 11% annually to reach 1,086 square feet in 2023, compared to 980 square feet in 2022. Over the past five years, the city witnessed a substantial 19% increase, with average sizes standing at 910 square feet in 2019.
Chennai recorded a 5% yearly increase in average flat sizes, rising from 1,200 square feet in 2022 to 1,260 square feet in 2023. Over five years, the city experienced a 15% rise, with average flat sizes at 1,100 square feet in 2019.
While Kolkata and MMR experienced a dip in average flat sizes by 2% and 5%, respectively, in the past year, their five-year trends tell a different story. MMR saw a mere 1% increase between 2019 and 2023, while Kolkata witnessed a 12% rise in the same period.
In a dynamically evolving real estate landscape, the quest for larger living spaces appears to be an enduring trend, defying conventional market expectations.
