Over the last five years, the real estate sector has seen the average size of economic apartments in major cities fall by 17% to match affordability, according to a study
According to a study, the average size of economic apartments was reduced by nearly 17% between 2014 and 2018 in the seven largest Indian cities. The Mumbai metropolitan area (RMM) recorded a compression rate of 27 percent, followed by Kolkata with a 23 percent reduction, according to the ANAROCK Property Consultants report. Bengaluru recorded the smallest decrease in average property size (about 12% during this period). The average decline for Pune was 22%, 16% in the Delhi area, 15% in Chennai and 13% in Hyderabad.
“The growing demand for affordable housing is a major factor in reducing the size of apartments in most subways. With real estate prices rising in most subways, developers have reduced their sizes to better align their offerings with buyers’ actual demand, “said Anuj Puri, president of ANAROCK Property Consultants. The compact housing is the fastest seller in the resale market. Thus, these houses offer millennia financial flexibility and both in terms of location, he said.
Among the factors leading to the shrinkage are the not-so-healthy job market and income in the last five years, a realty analyst said. The report also said that most home buyers are averse to the higher maintenance costs that larger properties entail.
“Live-in relationships are becoming more popular and socially acceptable and more and more young people give high priority to career growth, before deciding to marry and settle down,” Puri said. The mean age of marriage in India has increased from 21-25 years to 30-35 years, the report said.