Apartment size in India is shrinking. As per a recent report, average Indian homes sizes have shrunk by 27% over the past five years — from 1,400 square feet in 2014 to nearly 1,020 square feet in 2019 so far.
The Indian homes might be shrinking but NCR homes remain more or less the same. The same report mentions that minimum decline (6%) in size of houses has been seen in the national capital region (NCR), which is otherwise one of the worst-hit realty markets in the country.
The average size of apartments offered for sale across the country came down to 1,020 sq ft, while in NCR the size is 1,390 sq ft.
There are many factors causing the dip in the average apartment size:
- Liquidity crisis in real estate industry and thus lack of funds
- Less availability of loans from the bank
- Customers’ inclination towards affordable homes
- Developers’ motive to take benefit of credit subsidy which is given to affordable homes prices less than Rs.45 lakhs.
- GST benefit for affordable housing over mid-income housing
Average home size declined marginally in Chennai (8%), Bengaluru (9%) and Kolkatta (9%) as well. However, the maximum decline is seen in Mumbai and Pune.
Small Mumbai homes got smaller by 45% while Pune followed suit with 38% decline in the size of the homes with the average apartment size currently at 600 sq. ft.
Interestingly, average property sizes currently is highest in Hyderabad at 1,570 sq. ft. and least in MMR with 530 sq. ft.
“Among the major factors contributing to the escalating ‘claustrophobia effect’ of shrinking apartment sizes, demand for affordable homes in metros tops the list. Also, buyers are increasingly looking to avail the government’s credit subsidy benefits for affordable housing. These require a home to be priced less than Rs 45 lakh and not exceed 60 sq. mt carpet area or approx. 850 sq. ft. built-up area (including overall loading),” Money Control quoted Anuj Puri, chairman – ANAROCK Property Consultants, as saying.
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