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Wednesday, June 16th, 2021

COVID-19 and WFH Reverse Trend - Average Flat Size in Top 7 Cities Rises 10% in 2020

 

  • Avg. apartment size in top 7 cities - 1,050 sq. ft. in 2019 - increased to 1,150 sq. ft. in 2020
  • Avg. size in entire 2020 was maximum in Hyderabad (1,750 sq. ft.) - almost 2x bigger than that in MMR (932 sq. ft.)
  • MMR sees max. rise of 21% - from 773 sq. ft. in 2019 to 932 sq. ft. in 2020, followed by Pune with 12% annual rise
  • 2nd half of 2020 saw avg. apt. sizes increase to 1,200 sq. ft. from 1,090 sq. ft. in H1 2020

INVC NEWS
Mumbai ,

In a major trend reversal in the post COVID-19 pandemic world, ‘bigger is better’ is once again the catch-phrase on the Indian housing market. Fresh ANAROCK data confirms that average apartment sizes in the top 7 cities have risen by 10% on a yearly basis – to 1,150 sq. ft. in 2020 from 1,050 sq. ft. in 2019.

 

Past 4-year trends indicate that average apartment sizes were reducing y-o-y since 2016. 2017 saw the maximum yearly decline of 13% in avg. apartment sizes in the top 7 cities against the preceding year – from 1,440 sq. ft. in 2016 to nearly 1,260 sq. ft. in 2017. A fairly sudden change in consumer preferences to the backdrop of COVID-19 exigencies in 2020 first halted, then reversed the ‘honey, I shrunk the flat’ effect.

 

The average apartment size is still highest in in Hyderabad at 1,750 sq. ft. among the top cities – approx. 2x bigger than that in MMR where, at 932 sq. ft., average sizes continue to be the lowest. MMR nevertheless saw the maximum rise of 21% - from 773 sq. ft. in 2019 to 932 sq. ft. in 2020. Pune came next with a 12% annual increase in average apartment sizes – from 878 sq. ft. in 2019 to 986 sq. ft. in 2020.

 

Anuj Puri, Chairman – ANAROCK Property Consultants says, “The two main reasons for apartment sizes reducing in previous years were affordability and millennials’ preference for low-maintenance homes. Keen to generate more buyer interest with smaller price-tags, developers whittled down their flat sizes. 2020 saw an almost immediate reversal of buyer preferences. With the accent suddenly being on accommodating the WFH and learn-from-home culture, flat sizes began increasing for the first time in four years.”

 

Indian developers were quick to catch on that size matters again and the second half of 2020 saw average apartment sizes in the top 7 cities increase by approximately 10%. MMR and Pune, which had the smallest average flat sizes among all top cities, saw the maximum increase in 2020 over the previous year – by 21% and 12% respectively.

 

 

Year

Avg. Apt. Sizes in

Top 7 Cities (Sq. Ft.)

2015

1,400

2016

1,440

2017

1,260

2018

1,160

2019

1,050

2020

1,150

Source: ANAROCK Research

 

City-wise Trends

 

While MMR saw the maximum rise of 21% in average flat size, the region continues to have smallest average apartments among all top cities (932 sq. ft.)

 

Avg. Apartment Sizes (built-up area) in Top 7 Cities: 2019 vs 2020

 

Cities

Avg. Apt. Size in 2019 (in Sq. Ft.)

Avg. Apt. Size in 2020 (in Sq. Ft.)

% Change 2019 vs 2020

MMR

773

932

21%

NCR

1250

1290

3%

Bangalore

1280

1320

3%

Pune

878

986

12%

Hyderabad

1700

1750

3%

Chennai

1100

1200

9%

Kolkata

1000

1100

10%

Total

1050

1150

10%

Source: ANAROCK Research

 

  • Hyderabad still had the highest avg. apartment size of 1,750 sq. ft. in 2020, increasing by just 3% against 1,700 sq. ft. in 2019
  • Bangalore’s avg. apartment size also increased by 3% - from 1,280 sq. ft. in 2019 to 1,320 sq. ft. in 2020
  • In NCR, average apartment size was 1,290 sq. ft. in 2020 as against 1,250 sq. ft. in 2019 – a y-oy increase of 3%
  • Chennai saw average sizes increase by 9% during the period – from 1,100 sq. ft. in 2019 to nearly 1,200 sq. ft. in 2020
  • In Kolkata, avg. apartment size increased by 10% - from 1,000 sq. ft. in 2019 to 1,100 sq. ft. in 2020
  • Pune saw average flat sizes increase by 12% in a year – from 878 sq. ft. in 2019 to nearly 986 sq. ft. in 2020
  • MMR saw the highest rise of 21% – from 773 sq. ft. in 2019 to nearly 932 sq. ft. in 2020.

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