Indians think they're getting cheaper houses but they're just getting smaller ones


  • As homebuyers in Indian metros become more cost-conscious, real estate developers are making smaller housing units in a bid to divide costs and cut their losses.
  • While prices haven’t fallen significantly, the average size of a housing units in seven Indian cities has fallen by 17% to 1,160 square feet between 2014 and 2018.
  • The largest drop has been seen in the Mumbai Metropolitan Region (MMR) where housing units fell by 27% to 700 sq ft.
As the number of unsold houses piles up and homebuyers increasingly become more cost-conscious, India’s real estate developers are making smaller housing units in a bid to divide costs and cut their losses.

While the prices per square foot are more or less the same, the average size of a housing units in seven Indian cities has fallen by 17% to 1,160 square feet between 2014 and 2018, according to ANAROCK Property Consultants. Hence, real estate developers are still coming out on top and consumers are benefiting from lower average ticket sizes.

The largest drop has been seen in the Mumbai Metropolitan Region (MMR) where housing units fell by 27% to 700 sq ft. Bangalore saw the smallest decline as the average housing size fell by 12% to 1,430 sq ft.


The steepest reduction in housing size has been seen in the budget apartment segment, which comprises units that are worth ₹4 million or less. The major casualty of this trend has been balconies. Realtors are increasingly doing away with the construction of a second balcony.

The drop in housing sizes is directly correlated to the purchasing preferences of millenials, who favour lower maintenance costs.

In addition, as millenials are more geographically flexible and keep moving between cities in the interest of career growth, they aren’t as emotionally invested in their homes. Finally, the drop in housing size is also attuned to demographic trends. Younger homebuyers are taking a longer time to get married and start families, according to ANAROCK.


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