Real Estate: Top 7 Cities Average Apartment Sizes Will Rise by 11% in 2023

By Bricksnwall | 2024-01-29

Real Estate: Top 7 Cities Average Apartment Sizes Will Rise by 11% in 2023

Despite rising home costs and a return to normalcy across the nation, demand for larger apartments isn't going away. Based on the most recent data from real estate consulting firm Anarock, the average size of apartments in the top seven cities increased by 11% yearly last year, from 1,175 square feet in 2022 to 1,300 square feet in 2023.

According to the Anarock research, "the average flat size across the top-7 cities was 1,170 sqft in 2021 and 1,167 sqft in 2020," which is comparable to 2022.

Upon closer examination of the statistics for all top cities, it can be observed that the average flat sizes in only two cities?MMR and Kolkata?have declined over the past year.

"In MMR, typical apartment sizes dropped from 840 square feet in 2022 to 794 square feet in 2023, representing a 5% annual loss. Nevertheless, throughout a five-year span, the average MMR size was 784 square feet, which was comparable to 2019."

The average size of flats in Kolkata decreased by 2% annually between 2022 and 2023, from 1,150 square feet to 1,124 square feet. On the other hand, the city's average apartment size has increased by 12% in the last five years. As of 2019, the average size of a flat in the city was 1,000 square feet.

The average flat size in the top seven cities increased by 37% in only a single year, from 1,375 square feet in 2022 to 1,890 square feet in 2023. The NCR saw the largest gain in this regard. Larger residences are being released by developers in the area in response to the strong demand for luxury apartments, which are characterized by larger floor plans.

At 2,300 square feet, Hyderabad has the largest average flat size in 2023, followed by NCR at 1,890 square feet. The average size of an apartment in Bengaluru and Chennai, the other two southern cities, is 1,484 square feet. In 2023, the average flat size in Pune was 1,086 square feet.

Larger luxury property availability rose sharply in 2023. According to ANAROCK data, the luxury category accounted for about one lakh units, or roughly 23%, of all new releases in 2023.

Three years later, he continued, there is still a strong demand for larger dwellings, which was sparked by the pandemic. Driven by a persistent 'new normal' in the choices of homebuyers, this demand appears highly sustainable.