Average Flat Size in Top Seven Cities Increases by 32% in Five Years: Report

Over the past five years, the average flat size in India’s top seven cities has experienced a substantial increase, growing by 32%. This trend reflects a growing consumer preference for more spacious and comfortable living environments. A comprehensive report by ANAROCK, a leading real estate advisory firm, provides detailed insights into this phenomenon. The average flat size has risen from 1,145 square feet in 2019 to 1,513 square feet in the first half of 2024. This report includes key urban centers such as Delhi-National Capital Region (NCR), Hyderabad, Bengaluru, Kolkata, Pune, Chennai, and the Mumbai Metropolitan Region (MMR).

Growth in the Last Six Months

Statistically, a 7% increase in average flat size in the last six months have been interestingly noteworthy. By 2023, the average size across these cities had reached 1,420 square feet. This rapid growth indicates that the trend towards larger living spaces is accelerating, possibly due to evolving lifestyles and post-pandemic shifts in housing preferences.

The NCR Leads the Surge

Among these urban centers, the NCR stands out with the most remarkable growth. The average flat size in this region has surged by 96%, from 1,250 square feet in 2019 to 2,450 square feet in the first half of 2024. This dramatic increase includes a 30% rise in the last six months alone. According to Santhosh Kumar, the vice chairman of the ANAROCK Group, this significant growth is largely due to an increase in the supply of luxury apartments, as developers respond to the growing demand for spacious and upscale living spaces.

MMR: The Outlier

In contrast, the Mumbai Metropolitan Region (MMR) continues to offer the smallest average flat size among the top seven cities. In the first half of 2024, the average flat size in MMR was 825 square feet, marking a modest 5% increase from 784 square feet in 2019. Over the past six months, the region experienced a 4% growth in average flat size. Santhosh Kumar notes that MMR has seen the least growth over this period, with a notable 21% increase only in 2020 compared to 2019. The average size peaked at 840 square feet in 2022 but subsequently declined by 5% in 2023. This trend reflects the unique challenges and constraints of urban development in Mumbai, where high population density and limited land availability make expansive living spaces a premium.

Southern Cities and Kolkata

Hyderabad has reported an 18% increase in average flat size over the past five years, with the average reaching 2,010 square feet in the first half of 2024. Other major southern cities also show significant increases: Chennai and Bengaluru have average flat sizes of 1,450 square feet and 1,630 square feet, respectively. Meanwhile, Kolkata’s average flat size has remained stable at 1,125 square feet. Pune has seen a 21% increase over the five years, with the average size now standing at 1,103 square feet.

Factors Driving the Trend

Several factors are contributing to the trend of increasing flat sizes across these cities. One of the primary drivers is the rising demand for more spacious homes, influenced by the desire for improved quality of life and the need for additional space to accommodate work-from-home setups.

Additionally, the supply-side dynamics are equally important. Developers are increasingly focusing on constructing larger units to cater to the premium segment of the market. This shift is particularly evident in the NCR, where the availability of larger plots and the influx of luxury projects have facilitated the development of more expansive flats.

Challenges and Implications

While the trend towards larger flats is generally positive for homebuyers seeking more space, it also presents certain challenges. For instance, the construction of larger units requires more land and resources, potentially driving up costs for developers and, subsequently, homebuyers. In cities like Mumbai, where space is at a premium, the shift towards larger flats may exacerbate the affordability issue, making it more challenging for middle-class buyers to enter the market.

Moreover, the focus on larger units may lead to a shortage of smaller, more affordable options, particularly in densely populated urban areas. This could widen the gap between different segments of the housing market, necessitating targeted interventions to ensure that diverse housing needs are met.

The increase in average flat sizes in India’s top cities is a clear indicator of changing consumer preferences and market dynamics. While this trend presents opportunities for enhancing the quality of living, it also poses challenges that must be carefully managed to ensure a balanced and inclusive housing market. As urban centers continue to evolve, strategic planning and policy interventions will play a crucial role in shaping the future of residential real estate in India.