Kolkata: In the last five years, realty sector saw average size of budget apartments in major cities shrinking by 17 per cent to match affordability, a study has found. The top 7 Indian cities collectively saw the average apartment size shrink by almost 17 per cent between 2014 and 2018, it claimed.
Mumbai Metropolitan Region topped with 27 per cent squeeze, followed by Kolkata with 23 per cent reduction, the report by Anarock Property Consultants showed. Bengaluru saw the least decline in average property size at roughly 12 per cent during the period.
"A major element contributing to the shrinking apartment sizes across most metros is the rising demand for budget-friendly housing. With property prices going overboard in most metros, developershave been reducing sizes to align their offerings more with the actual homebuyer demand," Anarock Property Consultant chairman Anuj Puri said.
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Compact housing is the fastest seller in the resale market, so such homes give millennials both locational and financial flexibility, he said.Among the factors leading to the shrinkage are not-so-healthy job market and income riding in the last five years, a realty analyst said.
The report also said that most homebuyers are averse to higher maintenance costs that larger properties entail. "Live-in relationships are becoming more popular and socially acceptable, and more and more young people give high priority to career growth before deciding to marry and settle down," Puri said.
The mean age of marriage in India has increased from 21-25 years to 30-35 years, the report said. The average size dip for Pune was 22 per cent, Delhi NCR 16 per cent, Chennai 15 per cent and Hyderabad 13 per cent.
(Inputs from PTI)
