Bengaluru Loves It Big: Flats Across Indian Metros Turning Smaller With Time, Says Report; Not The Case In IT City
According to a recently released research report, the average size of apartments in most metro cities has fallen in the last five years, driven in part by the millennial preference for smaller flats in prime locations than larger ones in distant suburbs, reports Business Standard (BS).
According to the report published by real estate consultancy firm Anarock, the average size of properties costing below Rs 40 lakh decreased by as much as 23 per cent over the 2014-2018 period. In absolute terms, while the average size of a flat in 2014 was 750 sqft, it is now 580 sqft in 2018.
In the top seven cities - Mumbai, Bangalore, Delhi NCR, Pune, Hyderabad, Pune and Chennai - the average property sizes declined by 17 per cent in the corresponding period, to 1,100 sqft in 2018 from 1,390 sqft in 2014.
Among top cities, while the Mumbai Metropolitan Region (MMR) witnessed the maximum decline at 27 per cent in the average size of apartments, Bangalore showed the least decline at around 12 per cent.
Boost To Real Estate
In a significant fillip to the housing sector, the Goods and Services (GST) Council on 24 February) lowered the GST rate for normal under-construction houses to five per cent against the present effective rate of 12 per cent. The levy on affordable homes was also lowered to one per cent against the current 8 per cent. This is expected to promote increased house ownership among the middle class.