Kolkata/Hyderabad: Real estate industry dynamics indicate residential real estate is at mid-cycle with average flat size increasing by 11 per cent in calendar 2023. Among the top seven cities, the average flat size in Hyderabad stood the highest at 2,300 sq.ft. in 2023, followed by the National Capital Region (NCR). Mumbai Metropolitan Region (MMR) saw the lowest average flat size at 794 sq. ft, according to a recent report released by ANAROCk Group.
Demand for bigger apartments refuses to wane despite life returning to normalcy across the country post-Covid-and rising residential prices. Latest ANAROCK data indicates that average flat sizes in the top seven cities have grown by 11 per cent annually last year – from 1,175 sq. ft. in 2022 to 1,300 sq. ft. in 2023. Back in 2021 and 2020, the average flat size across the top seven cities was comparable to 2022 - 1,170 sq. ft. in 2021 and 1,167 sq. ft. in 2020.
A deep dive into the data across the top cities reveals that MMR and Kolkata were the only two cities where the average flat sizes decreased in the last one year. In MMR, average flat sizes stood at 840 sq. ft. in 2022 and decreased to 794 sq. ft. in 2023 – a 5 per cent yearly decline. However, over 5 years, average sizes in MMR were similar to 2019 at 784 sq. ft.
In Kolkata, average flat sizes saw a 2 per cent yearly decline from 1,150 sq. ft. in 2022 to 1,124 sq. ft. in 2023. However, over 5 years, average flat sizes have risen by 12 per cent in the city. The average flat size in the city stood at 1,000 sq. ft. in 2019.
Among the top 7 cities, NCR saw the highest growth (37 per cent) in average flat size in the last one year – from 1,375 sq. ft. in 2022 to 1,890 sq. ft. in 2023. Developers in the region are actively tracking demand and launching larger homes - home-buyer demand is skewed significantly towards luxury apartments, which are primarily defined by bigger sizes.
Hyderabad has the highest average flat size in 2023 at 2,300 sq. ft., followed by NCR with 1,890 sq. ft. In the other southern cities - Chennai and Bengaluru – average flat sizes are 1,260 and 1,484 sq. ft., respectively. Pune's average flat size stood at 1,086 sq. ft. in 2023