NCR leads with 96% growth in apartment sizes due to increase in new luxury supply

It observed that the average flat size across these major cities, including NCR, MMR, Bengaluru, Kolkata, Hyderabad and Chennai increased from 1,145 square feet in 2019 to 1,513 square feet in the first half of 2024 (H1 2024), the report showed.

Also Read: Average flat sizes in top seven cities rise by 11% in 2023; Delhi-NCR witnesses highest growth in average apartment size

NCR saw the most dramatic increase, with average flat sizes growing from 1,250 square feet in 2019 to 2,450 square feet in the first half (H1) of 2024. This was largely driven by an upward trend in luxury apartment supply.

Besides seeing the highest rise of 96% in average flat size in the last five years, NCR has also recorded the highest rise in the last six months. In NCR, the average flat size increased by 96% in the last five years – from 1,250 sq. ft. in 2019 to 2,450 sq. ft. in H1 2024. In the last six months, the average sizes increased by 30% in the region. In 2023, the average flat size here was 1,890 sq. ft. In both periods, NCR saw the highest jump among the top seven cities.

Of approximately 24,300 units launched in NCR in H1 2024 across different budget segments, luxury homes comprising the maximum share of 77% – approximately 18,600 units, it showed.

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In 2023, the average flat size across the top 7 cities was 1,420 sq. ft. – indicating a 7% jump in the last six months alone, the report showed.

“This significant jump in NCR’s average flat size is largely due to the increased new supply of luxury apartments in the last one year. Developers here are responding to the higher demand for spacious luxury homes with appropriate supply,” said Santhosh Kumar, vice chairman – ANAROCK Group.

Affordable housing supply declines in NCR

This is significant, considering that affordable housing previously dominated NCR’s supply. In fact, affordable segment supply in NCR has been declining steadily in the last few years.

“As expected, MMR saw the least growth in the average flat sizes in this five-year period,” said Santhosh Kumar. “The average flat size in MMR rose from 784 sq. ft. in 2019 to 825 sq. ft. in the first half of 2024 – a mere 5%. In this five-year period, only 2020 saw a notable 21% annual rise in the region’s average flat size against 2019. Since 2020, the average size here was the highest in 2022 – at 840 sq. ft. It fell by 5% in 2023 against the preceding year.”

Among the top 7 cities, NCR overtook Hyderabad to record the highest average flat size of 2,450 sq. ft. in H1 2024. In Hyderabad, it was 2,010 sq. ft. Average flat sizes in the other major southern cities – Chennai and Bengaluru – are 1,450 sq. ft. and 1,630 sq. ft. respectively in H1 2024. Kolkata’s average flat size stands at 1,125 sq. ft. while in Pune, it is 1,103 sq. ft.

Also Read: Luxury housing sales increase by 27% in the Jan-June period in 2024; Delhi-NCR tops list

An analysis of the five-yearly trend of average flat sizes in the top 7 cities shows a rise of over 32% – from 1,145 sq. ft. in 2019 to 1,513 sq. ft. in H1 2024.

In Hyderabad, the average flat size increased by 18% in this five-year period – from 1,700 sq. ft. in 2019 to 2,010 sq. ft. in H1 2024. Contrastingly, between 2023 and H1 2024, Hyderabad is the only city to see the average flat size decrease – by 13%, the report showed.

Bengaluru saw a 27% five-yearly jump in average flat size – from 1,280 sq. ft. in 2019 to 1,630 sq. ft. in H1 2024. Between 2023 and H1 2024, the city saw average flat sizes increase by 10%, it showed.

In MMR, average flat sizes continue to be the lowest among the top 7 cities – at 825 sq. ft. in H1 2024. However, there has been a 5% increase in H1 2024 against 2019, when it stood at 784 sq. ft. In the six-months period, the region saw average flat sizes see a 4% yearly increase, the report showed.