Are Small Houses The Newest Fad In The Market?

Enormous homes with outspread verandahs, wide porches and spacious rooms now seem to have become a crumbling concept. What’s trending as the new real estate vogue is the idea of small-sized apartments and villas.

Metropolitan cities, brimming with urban populace, are drifting towards the idea of smaller apartments. With an average apartment size of 1,100 sq. ft., Mumbai stands to have the lowest average figure among other metro cities. Due to the scarcity of developable land, builders in Mumbai develop vertical buildings having smaller flats. Records show that the flat size in Mumbai is 15 percent lower than the national median size.

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Similar conditions prevail in Delhi/NCR with the average apartment size being 1,500 sq. ft. Though the reduction in apartment sizes is lower than that of Mumbai, it is significant enough to be a matter of concern. High cost of land is another reason behind the growing trend of small apartments. Moreover, Delhi and Mumbai have larger a population of investors who prefer to have smaller homes near the city area.

Among large metro cities, Bangalore has the most elevated average apartment size of 1,750 sq. ft. This figure is 45% higher than the national median and 60% and 20% higher than Mumbai and Delhi/NCR, respectively. Buyers largely being end-users prefer to have big condos to settle into. Calculative studies suggest that units with sizes ranging between 1,850 sq. ft and 2,000 sq. ft. pitch in 90% of total the apartment sales.

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The question that arises here is why people are drifting towards smaller homes.

Why are small homes covering a big market?

The rising trend of small-sized apartments is a result of easy affordability of these projects. With a reasonable price margin they drive in more interests.

Maintenance is one of the most genuine reasons for the rising demand of smaller apartments, as the cost of maintaining the interiors and exteriors of these apartments is relatively cheaper than bigger apartments.

Small houses are easier to sell as they have a wider market owing to their affordability and economical sizes.

There has been substantial shrinkage in the average apartment sizes in Mumbai and Delhi/NCR in the last 4-5 years and it would be interesting to see whether the trend continues in the coming years or not.

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