Industry experts have noticed a reduction in the sizes of the new apartments by at least 15 to 17% on an average in the last couple of years in India. The developers in the top cities of the country are offering apartments of smaller sizes, as reported in the data published by Square Yards, the largest online marketplace at present in India for new homes. In turn, the developers are resorting to higher efficiency in the apartment buildings and the trend has been noticed in top cities of the country like Noida, Mumbai, Kolkata, Pune, Chennai, Bangalore, Hyderabad and Gurgaon among others.
Tanuj Shori, Founder and CEO of Square Yards, in an interview with Zee Business Online had opined that there was a certain degree of asset mismatch in terms of price for residential properties and developers are finally addressing that discrepancy. In turn, they are now offering more compact apartments which are making better utilization of space, at the same time making the units more affordable. The developers are also reducing the saleable area and they are bringing uniqueness in the layouts of the flats, by offering all amenities in the apartment buildings as well. Mr. Shori further added that the homebuyers can also focus more on the carpet area of the apartments after the enactment of the RERA and developers are also achieving greater efficiency when they are planning their projects. He hopes that the trend of trend of space and price optimization for the benefit of the buyers continue, which will only lead to the growth of the Real Estate Sector in the future.
Rakesh Yadav, the CMD of Antariksh India Group also agrees with Mr. Shori and has opined that Mumbai has recorded the highest reduction in apartment sizes among the other cities. The average sizes of the apartments were about 1084 sq feet for a 2 BHK apartment in 2017- 2018 and it had come down to 809 sq feet the consecutive year. In the same way, the average size of the 3 BHK apartment used to be around 1710 square feet and it had come down to 1265 sq feet only, a drop by 26 percent. But with the percentage of the saleable area of the apartments increasing, the home buyers now stand a chance to enjoy greater space with increased carpet area. The next city to see a fall in the sizes of flats is Pune with the average saleable area of a 2BHK unit coming down to 867 sq feet on average from its 1074 sq feet in 2017- 2018 in the last couple of years, and that of a 3 BHK unit coming down to 1323 sq feet from its erstwhile 1799 sq feet, a reduction by 26 percent. However, considering the apartments are now within the purchase limits of the buyers, the move has been beneficial for both the parties.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.