Home >Money >Personal Finance >Why developers are launching bigger-sized apartments

Due to the covid-19 pandemic, which made work from home the new normal, homebuyers now prefer bigger apartments.

The average apartment size has increased for the first time in four years in the top seven cities, according to data from ANAROCK Property Consultants released Thursday.

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The average size of an apartment was 1,150 square feet in 2020, while in 2019, it was at 1,050 sq ft. The top seven cities have seen an average increase of 10% in apartment sizes.

Since 2016, the average apartment sizes were reducing year-on-year. The year 2017 saw the maximum decline. Apartment sizes fell from an average of 1,440 sq ft in 2016 to 1,260 sq ft in 2017—a drop of 13%.

The following data shows the average decline in the apartment size in the top seven cities.

  • 2015 - 1,400 sq ft
  • 2016 - 1,440 sq ft
  • 2017 - 1,260 sq ft
  • 2018 - 1,160 sq ft
  • 2019 - 1,050 sq ft
  • 2020 - 1,150 sq ft

"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," said Anuj Puri, Chairman, ANAROCK Property Consultants, in a statement.

But 2020 saw an almost immediate reversal of buyer preferences. "With the accent suddenly being on accommodating the work from home and learn-from-home culture, flat sizes began increasing for the first time in four years," said Puri.

Among the top seven cities, an apartment's average size is the highest in Hyderabad at 1,750 sq ft. It is two times bigger than Mumbai Metropolitan Region (MMR), where the average size is 932 sq ft, which is also the lowest among bigger cities in the country.

However, in terms of percentage increase, MMR saw the maximum rise of 21%. Apartment size went from an average of 773 sq ft in 2019 to 932 sq ft.

Pune came next with a 12% annual increase in average apartment sizes – from 878 sq ft in 2019 to 986 sq ft in 2020.

According to the report, Indian developers were quick to catch on that size matters again. They started constructing bigger houses based on the trend.

The following data shows the increase in apartment size in the top seven cities in 2020 compared to 2019.

  • Mumbai Metropolitan Region - 21%
  • Pune - 12%
  • Kolkata - 10%
  • Chennai - 9%
  • Bengaluru - 3%
  • Hyderabad - 3%
  • National Capital Region – 3%

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