In a strategic move aimed at enhancing affordability in the real estate market, builders in the National Capital Region are planning to reduce the sizes of apartments. This initiative comes as a response to the rising average apartment sizes, which climbed from 1,250 square feet in 2019 to 2,435 square feet in 2024. Developers are now considering launching units starting at 1,500 square feet, allowing prices to remain competitive, particularly in the ₹2-4 crore range.
- Developers are reducing apartment sizes to enhance affordability for buyers.
- The average apartment size in NCR has surged significantly since 2019.
Shifting Trends in NCR Real Estate
The recent trend observed in the **NCR** real estate market indicates a significant shift towards smaller apartment sizes to cater to a broader range of buyers. Industry leaders have noted that while the average size of flats ballooned in previous years, the demand for more modestly-sized units is becoming increasingly evident. For instance, Signature Global’s Pradeep Kumar Aggarwal reported that the company will focus on launching projects with sizes between 1,800 and 2,200 square feet, targeting the ₹2-4 crore price bracket. This adjustment reflects a growing awareness of the competitive landscape and changing buyer preferences, especially among mid-segment buyers who find larger units financially prohibitive.
Furthermore, a report highlighted that NCR recorded a notable increase in average flat size, which rose from 1,890 square feet in 2023 to 2,435 square feet in 2024. This trend may have created a market gap, prompting developers like Prateek Group to introduce smaller units in Ghaziabad, consisting of 2,400 apartments across various configurations. The focus on affordability is not only a response to market demand but also a strategic pivot to ensure sustainability in a competitive real estate environment.
The Impact of Rising Construction Costs
As construction costs continue to rise, larger apartments are becoming increasingly expensive. A smaller 1,500 square foot apartment can be sold for between ₹1.25-1.5 crore in certain areas of **Noida** and **Ghaziabad**, while prices in **Gurgaon** could reach ₹2.5-3.5 crore. This has led to a substantial decline in the share of affordable housing in NCR, dropping from 24% in 2023 to just 11% in 2024. Experts believe that targeting smaller units will not only meet current market demand but also attract end-users who have been overlooked in recent years. Shauzab Kazmi, director at Moneytree Realty, emphasized the untapped potential in this segment, asserting that new launches focusing on affordability could reinvigorate buyer interest.
The luxury segment has been dominating the market, with 70% of newly launched units falling into this category in 2024. However, as buyer preferences shift post-pandemic, there is a growing demand for more accessible housing options equipped with modern facilities and amenities. This evolving landscape necessitates a strategic reevaluation of housing offerings across the NCR, allowing developers to align with changing consumer expectations and financial realities.
Future Outlook for NCR Real Estate
Looking ahead, the NCR real estate market is poised for transformative changes as developers adapt to evolving buyer preferences and economic conditions. The reduction of apartment sizes is likely to become a standard practice as the demand for affordability grows. This trend may also signal a broader shift across major Indian cities, where similar patterns in apartment sizing can be observed.
