– Most prospective homebuyers looking at homes that are 1,300 sq ft, up by 4% in Jan – Mar 2018 in comparison to Jan – Mar 2017
National, June 24, 2018: With increased aspirations and changing lifestyle most prospective homebuyers in India want bigger and better homes, suggests the data study by Housing.com and makaan.com. According to the recent study Indians are looking for homes that are 1,300 sq. ft, up by 4% in Jan – Mar 2018 in comparison to January-March 2017.
Leading in the right direction
Among tier-I cities Hyderabad is making the most of its affordability advantage and registered the highest demand for bigger homes. The average unit size demanded in the city is 1,757 sq ft, up from 1,710 sq ft (up by 2.7%).
Pune and Chennai follow Hyderabad’s trend closely. In Pune, the size demanded is up by 5.2% and now stands at 1,027 sq ft while Chennai has clocked a similar growth of 5.1% and is now at 1,186 sq ft.
In terms of size, Gurgaon is at number two with potential buyers demanding, on an average, homes as big as 1,600 sq ft.
Bengaluru is also keeping it big with its demand for homes where the average size is 1,409 sq ft.
Homes as big as 1,322 sq ft are in demand in Greater Noida while affordable Noida is also demanding homes as big as 1,319 sq ft.
Cities with smaller home trends
Delhi has seen a growth of 1.5% over last year, however, the average size of a unit remains under 1,000 sq ft, at around 900 sq ft.
Housing units’ size demanded in Mumbai is at 875 sq ft, down by 8.2%. Mumbai, by far has seen the sharpest decline in terms of the size of homes demanded.
Cities that have cut down on their space needs include Bengaluru, Greater Noida, and Gurgaon. However, in these cities, spacious homes (above the national average) are still in demand, therefore, it looks like more of a space rationalisation and optimisation than negative growth.
Commenting on the changing trends Ravi Bhushan, Group Chief Product and Technology Officer, Housing.com, PropTiger.com, Makaan.com said, “Bigger homes combined with affordability is a growing trend witnessed by the Indian real estate sector. The large scale of urbanisation combined with the rise of salaried and educated homebuyers has led a surge in demand for bigger homes in cities like Hyderabad, Pune, and Chennai. Hence, to be able to address this opportunity, developers need to change their approach and adopt smarter strategies.”
Cities where developers are addressing the demand for bigger homes
In 2018, the demand for homes in Bengaluru, is in the size range of 1,409 sq ft. On the supply side, India’s Silicon Valley seems to have grasped the pulse of homebuyers with residential projects having an average size range of 1,428 sq ft.
Chennai developers have tweaked their strategy so while bigger homes were supplied in the market in 2017 with units being as big as 1,600 sq ft on an average, this year, the supply on an average is at 1,210 sq ft, which is close to what is in demand which is at 1,186 sq ft.
Kolkata too witnessed matching demand and supply. With buyers asking for homes that are 1,085 sq ft, real estate developers have responded with supply in 2018 leaning towards smaller homes with an average size range of 1,180 sq ft. as compared to 1,515 sq ft homes in 2017.
Cities where developers are yet to match demand
Delhi is demanding small homes with an average size of 900 sq ft but developers don’t seem to be keeping pace with that expectation as the supply is still on the higher side with a size of 1,227 sq ft.
Mumbai has an ask for the smallest homes in the country at 875 sq ft but has a supply of homes with sizes bigger than 1,000 sq ft. on average.
Greater Noida and Noida, where a large part of the unsold inventory in the country exists, is affordably priced but units here are smaller than the need of the buyers.
Hyderabad is going beyond the ask of the average homebuyer and what we see in the market are much bigger sized homes at 1,921 sq ft. The good news is that compared to 2017, where supply was on the bigger side at 1,960 sq ft, we see a rationalisation. Gurgaon too is in a similar position.
While the demand in the market is picking up, data suggests the need for tweaks in what is being offered, to ensure balance between supply and demand.
The cities included in the study include Mumbai, Kolkata, Chennai, Delhi, Bangalore, Hyderabad, Noida, Gurgaon, Greater Noida, Pune.
Corporate Comm India(CCI Newswire)
