While the real-estate market is suffering all over the country, now reports have surface saying that flat sizes across the country have shrunk by 27% since 2014.
According to a DNA report, the flat sizes in Mumbai have seen highest record drop of 45 percent - from 960 sqmt in 2014 to 530 sqft in 2019. The report by Anarock Property Consultants suggests that liquidity crisis, changing buyer preferences and growing concerns about affordability have been the catalysts for real estate developers to alter the conventional wisdom of 'bigger the better' to 'good things come in small packages' and significantly moderate unit sizes across seven major cities.
The property consultant said, the average apartment sizes in the top seven cities - Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (NCR), Pune, Chennai, Bengaluru, Hyderabad, Kolkata - have shrunk by 27 per cent over the past five years from 1,400 sq ft in 2014 to nearly 1,020 sq ft in 2019 so far.
Pune registered 38 per cent reduction in sizes during this period, with the average apartment size currently at 600 sq ft. Anarock said that the average sizes in both MMR and Pune are calculated on the carpet area while for the remaining cities it is based on the built-up area. Chennai, Bengaluru and Hyderabad have seen size reduction of 8 per cent, 9 per cent and, 12 per cent, respectively, over the past five years.
Among the major factors contributing to the escalating claustrophobia, demand for affordable homes in metros tops the list. "Buyers are increasingly looking at availing the government's credit subsidy benefits for affordable housing," says the report. "These require a home to be priced under Rs 45 lakh and not exceed 60 sqmt carpet area limit or approximately 850 sqft built-up area (including overall loading)."
On further analysis, Anarock said that affordable homes priced less than Rs 40 lakhs have seen the maximum decline in sizes over the previous years, while ultra-luxury homes saw the least. Affordable homes priced less than Rs 40 lakhs saw average sizes reduced by 28 per cent - from 750 sq ft in 2014 to 540 sq ft in 2019.
Mid-segment apartments priced from Rs 40 lakhs to Rs 80 lakhs saw sizes reduced by 17 per cent - to 950 sq ft in 2019 from 1,150 sq ft in 2014. Premium homes priced between Rs 80 lakhs to Rs 1.25 crore saw a 21 per cent reduction in sizes – from 1,450 sq ft in 2014 to around 1,140 sq ft in 2019. Luxury homes priced between Rs 1.5 crore to Rs 2.5 crore saw an 18 per cent reduction in average sizes - from 1,640 sq ft to 1,350 sq ft. Ultra-luxury homes priced more than Rs 2.5 crore saw a mere 8 per cent decline in average sizes over the last five years – from 2,400 sq ft in 2014 to around 2,200 sq ft in 2019.
