Average size of home increases by 11% Y-o-Y, NCR sees biggest rise

The average size of a home has increased from 1,050 sq ft in 2019 to 1,300 in 2023 as Covid pushed the demand for bigger houses with extra space.According to data by Anarock, NCR has seen the biggest increase in a year with the average of a flat increasing from 1,375 sq ft in 2022 to 1,890 sq ft in 2023, an increase of 37% yearly. In a five-year period, flat size jumped by 51% from 1,250 sq ft in 2019.Most of the launches in Delhi-NCR have been in 2,000 sq ft category with recent developers such as DLF, TARC launching apartments of 3,000 sq ft and above.

Developers in the region are actively tracking demand and launching larger homes – homebuyer demand is skewed significantly towards luxury apartments, which are primarily defined by bigger sizes.

“The supply of bigger luxury homes increased significantly in 2023. The demand for bigger-size homes was kick-started by the pandemic, but there are no signs of it waning three years later “ said Anuj Puri, Chairman of the Anarock group.

ANAROCK data indicates that more than one lakh units (or approximately 23%) of the total new launches in 2023 were in the luxury category.

In MMR, average flat sizes stood at 840 sq ft in 2022 and decreased to 794 sq ft in 2023 – a 5% yearly decline. However, over 5-year period, avg. sizes in MMR were similar to 2019 at 784 sq ft.

In Bengaluru, the average flat size increased by 26% in the year – from 1,175 sq ft. in 2022 to 1,484 sq ft. in 2023. On a 5-yearly basis, India’s Silicon Valley saw a 16% jump in average flat sizes, from 1,280 sq ft in 2019.

The average flat size of luxury homes in the top 7 cities stood at approximately 2,261 sq ft. in 2022 while in 2023 it went up to 2,471 sq ft.

The mid and premium segments (priced within Rs 40 lakh to Rs 1.5 crore) saw 4% yearly jump in average flat sizes – from 1,182 sq ft in 2022 to nearly 1,226 sq ft. in 2023.

Meanwhile, the affordable segment priced less than Rs 40 lakh saw the least change in average flat sizes – from 779 sq ft in 2022 to nearly 793 sq ft in 2023.

“The fact is that due to buoyant demand from luxury buyers, developers have consciously increased the new supply in this segment over the last few years and 2023 saw a significant jump in new supply. Moreover, this new supply comprised of large-size homes for the discerning buyers. There has been an increased new supply in the ultra-luxury segment as well whose sizes are also bigger,” said Puri.