'A major shift in consumer preferences towards larger homes', says Anarock report
Aug 11, 2024, 14:12 IST
The average flat sizes in India's top seven cities have surged by 32% over the past five years, with the National Capital Region (NCR) witnessing a significant 96% growth, the Anarock Group said in the latest report.
The report highlights a major shift in consumer preferences towards larger homes, despite rising property prices. It observed that the average flat size across these major cities increased from 1,145 square feet in 2019 to 1,513 square feet in the first half of 2024 (H1 2024). NCR saw the most dramatic increase, with average flat sizes growing from 1,250 square feet in 2019 to 2,450 square feet in the first half (H1) of 2024. This was largely driven by an upward trend in luxury apartment supply.
The growth observed in the NCR positioned the region as the leader in average flat size among the top seven cities. Hyderabad followed NCR, where the average flat size is now 2,010 square feet. Santhosh Kumar, Vice Chairman of Anarock Group, says, "This significant jump in NCR's average flat size is largely due to the increased new supply of luxury apartments in the last year. Developers here are responding to the higher demand for spacious luxury homes with appropriate supply."
While NCR leads in terms of growth, other cities also recorded notable increases in average flat sizes. Bengaluru saw a 27% rise, with sizes increasing from 1,280 square feet in 2019 to 1,630 square feet in H1 2024. Chennai followed closely with a 32% increase, with average flat sizes reaching 1,450 square feet in H1 2024.
Conversely, the Mumbai Metropolitan Region (MMR) recorded the smallest growth in average flat sizes, with only a 5% increase over five years. The average size in MMR rose from 784 square feet in 2019 to 825 square feet in H1 2024, reflecting the region's limited availability of larger homes and the high demand for compact urban living spaces.
The report also notes that 2023 was a significant year for growth, with the average flat size across the top seven cities standing at approximately 1,420 square feet. This represents a 7% increase in the last six months alone, indicating a continued consumer preference for larger homes despite the return to normalcy post-pandemic and rising property prices.
The report added that the upward trend in flat sizes reflects a significant shift in buyer preferences, likely influenced by the pandemic, as homebuyers prioritize more spacious living environments. The rise in luxury apartment supply, particularly in NCR, underscores the growing demand for larger, more luxurious homes across India's major cities, the report added.
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The report highlights a major shift in consumer preferences towards larger homes, despite rising property prices. It observed that the average flat size across these major cities increased from 1,145 square feet in 2019 to 1,513 square feet in the first half of 2024 (H1 2024). NCR saw the most dramatic increase, with average flat sizes growing from 1,250 square feet in 2019 to 2,450 square feet in the first half (H1) of 2024. This was largely driven by an upward trend in luxury apartment supply.
The growth observed in the NCR positioned the region as the leader in average flat size among the top seven cities. Hyderabad followed NCR, where the average flat size is now 2,010 square feet. Santhosh Kumar, Vice Chairman of Anarock Group, says, "This significant jump in NCR's average flat size is largely due to the increased new supply of luxury apartments in the last year. Developers here are responding to the higher demand for spacious luxury homes with appropriate supply."
While NCR leads in terms of growth, other cities also recorded notable increases in average flat sizes. Bengaluru saw a 27% rise, with sizes increasing from 1,280 square feet in 2019 to 1,630 square feet in H1 2024. Chennai followed closely with a 32% increase, with average flat sizes reaching 1,450 square feet in H1 2024.
Conversely, the Mumbai Metropolitan Region (MMR) recorded the smallest growth in average flat sizes, with only a 5% increase over five years. The average size in MMR rose from 784 square feet in 2019 to 825 square feet in H1 2024, reflecting the region's limited availability of larger homes and the high demand for compact urban living spaces.
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The report added that the upward trend in flat sizes reflects a significant shift in buyer preferences, likely influenced by the pandemic, as homebuyers prioritize more spacious living environments. The rise in luxury apartment supply, particularly in NCR, underscores the growing demand for larger, more luxurious homes across India's major cities, the report added.