Are people looking for bigger homes now?

 

Are people looking for bigger homes now?

 

Industry experts explain why home sizes in several leading cities have increased in the recent past

        “Having lived in a one-BHK for most years of my life, I always wished to buy a bigger home.  Thus, within one-and-half years after securing my first job, I began house-hunting and in 2021, I booked a three-BHK apartment in an under-construction project in Vikhroli ( Mumbai ).  Once I get possession this year in Diwali, I will move into my new home,”.

     Off late, many like Thorat have upgraded themselves to bigger homes because of which the demand for them has increased.  Developers were quick to notice this change in trend, and thus the average flat size in fresh supply in the top seven cities increased by seven percent in the last five years-from approximately 1,150 sq ft to around 1,225 sq ft in Q1 2023, according to a  recent report by Anarock.

     But despite rising property prices, what is making people buy bigger homes?  Our experts tell us.

 Factors driving demand

     “Millennials are the ones buying homes today.  Unlike the earlier generations, they generally do not have family responsibilities and pressures, while also being highly paid.  Additionally, they understand the concept and importance of having a dedicated space for each  individual in the house; along with having a strong desire to live a quality lifestyle and not a compromised one.  Also, for the past two quarters, the rates have been well under control and the interest rates haven’t surpassed the further elaborating on more reasons

 “Economic Prosperity:

        Economic growth and rising incomes enable individuals and families to afford larger living spaces.  As societies become wealthier, people with higher disposable incomes prefer to buy bigger homes; individuals and families to enjoy a high standard of living;

  Multi-generational living:

         In some cultures, multi-generational living has become more common, where multiple generations of a family live under one roof.  This arrangement often requires more space to ensure privacy and accommodate hobbies, collections, and general store needs”.

          While, as per the report, the sizes of homes increased in NCR, Kolkata, Hyderabad, Pune, Bengaluru from Q1 2022 to Q1 2023 by 50,44,29,16 and eight percent respectively, the average flat sizes in Chennai and MMR decreased region.  Developing such projects in city centres results in a loss for the developers as well as there aren’t many buyers”.

 How are developers coping with this rising demand for larger homes?

               Developers are increasingly conscious of launching homes that match consumer demand today and since buyer preference continues to be titled towards bigger-sized homes, there are more new launches.  No wonder we are seeing an increased new supply in the mid, premium and luxury segments in the recent past.  “As  per our research, out of thetotal new launches of around 1.10 lakh units across top seven cities in Q1 2023, the affordable segment (priced <Rs40 lakh) contributed a mere 18 percent share, premium segment priced between Rs 80 lakh and Rs 1.5 Crore had 24 percent share.