According to a recent study by a leading research agency, the top seven cities in India collectively witnessed a decline in the average apartment sizes by nearly 17 percent between 2014 and 2018. While Mumbai topped the list with a 27 percent decrease in its apartment sizes, Bangalore witnessed the least decline of 12 percent in five years.
Majority Indian cities have exhibited an augmenting demand from millennials for affordable homes over larger flats in far-flung suburbs. The consequent developer’s efforts to tap a larger customer base has led the properties costing less than Rs 40 lakh to witness a sharp decline in the average apartment sizes during the 2014-2018 period. While the average property sizes declined from 1,390 sq ft in 2014 to 1,160 sq ft in 2018, Bangalore strolled behind with the current average size being 1,260 sq ft at present. As compared to the other six cities viz. Mumbai, Kolkata, Pune, Delhi NCR, Chennai, and Hyderabad, the average size of apartments in Bangalore remains the highest in India.
Elaborating the reasons why Bangalore has large residential units, Vishal Parwani, Owner SSB properties opines, “Affordability is the key to the success of real estate in Bangalore. While a 3BHK unit in Bangalore starts from Rs 1 crore onwards, the same in Mumbai is priced at Rs 3 crore and above. Moreover, Bangalore has an ample amount of land for construction at affordable rates. Whereas, cities like Delhi NCR and Mumbai have a scanty supply of developable land. Subsequently, the developers need to keep the apartment sizes small in order to yield the most out of the available land. Though there is not much difference in the cost of construction in the three cities, the additional cost in the form of transportation and accommodation for the labourers in Delhi NCR and Mumbai results into an escalation in the overall cost of the property for the homebuyers. The developers, therefore, are left with no option other than to shrink the apartment sizes in order to meet the buying capacity of the homebuyers.”
As per the report, Mumbai has witnessed a steady decline in its apartment sizes, from 960 sq ft in 2014 to 700 sq ft in 2018. On the other hand, Bangalore is an investment hub for the homebuyers, where leasing or renting out is an attractive option with strong returns. Brimmed with mid-segment IT professionals who prefer comfort and luxury to cramped spaces, Bangalore is known to provide amenities at competitive prices in comparison to NCR or Mumbai. This is perhaps the reason why a majority of the homebuyers in Bangalore prefer a 3 BHK to 1 BHK apartment. Moreover, a majority of the demand comes from the end-users who are located in the tech-hubs of the peripheries. This allows the developers to take the pressure off the city areas and allow bigger sizes, which is not the case in Mumbai.
Revealing the home buying sentiment in Bangalore, Vishal shares, “Majority of the homebuyers in Bangalore either belong to the 25-30 years age group or are 35-45 years of age. Keeping the climatic conditions of the city in mind along with the earning capacity of the family members, almost everyone prefers large houses between 1,500 sq ft and 2,000 sq ft comprising of amenities such as a balcony, pool, gym, and additional washrooms. The buyer sentiment is clearly visible in the real estate market of the city where the developers try and necessarily incorporate such amenities to fulfil the needs of the prospective homebuyers. People in Bangalore prefer spending time with family members inside the premises unlike the inhabitants of other cities where life is quite hectic.”
Echoing the sentiments, Manish Bansal, Director and CEO, Window Magic shares, “Bangalore, once considered as a city of retired professionals is truly a metro as of now. Majority of the homebuyers in the city belong to South India who are used to large-sized houses with open spaces. The climate of the city also plays a crucial role in the designing of apartments. Besides this, the city has a large number of highly paid professionals and hence, their affordability towards large apartments, especially on the outskirts, is much more viable than their contemporaries in Delhi or Mumbai.”
In a city where most of the demand comes from a migratory population, the changing preferences of the homebuyers along with the availability of land and the cost therein can be cited as the primary reasons behind the large size construction of the houses.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.