Millenials prefer location over size in top cities
On an average apartments have become smaller from 1390 sq ft in 2014 to 1100 sq ft in 2018.
Chennai: The top seven Indian cities collectively saw average apartment sizes shrink by nearly 17 per cent between 2014 and 2018. On an average apartments have become smaller from 1390 sq ft in 2014 to 1100 sq ft in 2018.
In order to make housing projects more pocket-friendly for a higher customer base, developers are shrinking the sizes of the apartments, finds Anarock Property Consultants.
Among the top cities, Mumbai topped the list with a 27 per cent average decrease in apartment sizes - from 960 sq. ft in 2014 to 700 sq. ft. in 2018. Delhi-NCR was the sizes coming down by 16 per cent from 1,485 sq ft to 1,250 sq ft in the five years. Kolkata saw the sizes reducing by 23 per cent and Chennai 14 per cent. Bangalore saw the least decline in size at around 12 per cent in five years. The current average size in Bangalore is 1260 sq ft. Prior to 2017, the average sizes in Bangalore fluctuated by 1-2 per cent y-o-y. But in 2018, they dropped by over 12 per cent against the preceding year.
Hyderabad currently has the highest average property sizes about 1,600 sq. ft. Property buyers in Hyderabad have traditionally preferred large-sized homes.
The maximum reduction in average property was seen in the budget housing priced less than Rs 40 lakh. The average size of homes priced below Rs 40 lakh was 750 sq. ft. in 2014 and it reduced by 23 per cent in 2018.
Apartment sizes in the luxury-housing, priced above Rs 80 lakh also saw a 20 per cent reduction over the last five years. The average size of properties in this segment was 1,830 sq. ft. in 2014, which came down to 1,460 sq. ft. in 2018. Mid-segment housing priced between Rs 40 - Rs 80 lakh saw the least size reduction of 17 per cent - from 1,150 sq. ft. in 2014 to around 950 sq. ft. in 2018.
According to Anarock the millennials preferences are key changes in the apartment sizes. Millennial homebuyers prefer affordability coupled with good location over larger-sized homes in the far-flung suburbs.
"Compact housing is the fastest seller on the resale market, so such homes gives millennials both locational and financial flexibility while simultaneously allowing them the security and investment advantages of homeownership,' said Anuj Puri, Chairman, Anarock Property Consultants.