Size of apartments in newer areas like Kharadi and Wagholi and IT hubs like Hinjewadi and Balewadi are witnessing this trend of apartment sizes getting smaller. However, in traditional areas of Pune, the picture is the opposite, say developers. (Picture credits: Mehul R Thakkar)

In Maharashtra, after the Mumbai real estate market, one of the most promising real estate markets is Pune, a city that is around four hour's drive from Mumbai, the country's financial capital.

Historically, though Pune has been home to big apartments with huge balconies and terraces, thanks to the skyrocketing prices of real estate, the city's market has also started facing the problems witnessed in the Mumbai market.

The first is the size of apartments, which is shrinking, said multiple real estate experts and developers Moneycontrol spoke with.

According to real estate developers in Pune, the apartments being constructed are far bigger than in Mumbai. Yet, as affordability is increasingly becoming a challenge, the sizes of apartments in Pune are falling.

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"Prices peaked in Pune in December 2015, when the average rate across the city was Rs 5,096 per square foot. This was the time affordability dropped to its lowest point at 5.27 times annual income. Home sizes, too, peaked at 981 sq ft. Thereafter, average home sizes started to come down and bottomed out in 2018 before the market turned in 2019," said Rohit GERA, Managing Director of Pune-based GERA Developments.

"I would not say Pune apartment sizes are going the Mumbai way because the average size of apartments in Pune is much larger than in Mumbai. In the pre-COVID-19 years of 2016, 2017, and 2018, apartment sizes in Pune were decreasing. But after COVID-19, the average size of apartments in Pune has gone up. Today, we are in a situation where affordability is reasonably strong, and hence, people are demanding and buying larger homes. So, a compact 3 BHK for someone is a comfortable 2 BHK for someone else," he added.

Average size?

"The average size of apartments of the top 10 developers in Pune is about 1,000 sq ft, and 850 to 950 sq ft carpet for small- and mid-sized developers. In comparison, the average size is 600 to 650 sq ft in Mumbai. In both these markets, the average size of an apartment increased post-COVID-19 by 50 to 100 sq ft as homebuyers demanded more space," said Aniket Dani, Director- Research, CRISIL Market Intelligence and Analytics.

According to developers, the sizes of apartments in newer areas like Kharadi and Wagholi and IT hubs like Hinjewadi and Balewadi are witnessing this trend of apartment sizes getting smaller. However, in traditional areas of Pune, such as Koregaon Park, Camp Area, and Kothrud, the sizes of apartments have continued to remain comparatively larger.

Apartment sizes going down: a global phenomenon?

"I feel apartment sizes going down are happening around the world, including in Pune and Mumbai. This is because as affordability takes a hit, developers start making smaller apartments. For example, in the New Kalyani Nagar area of Pune, we are selling 2 BHK apartments with 1,000 sq ft carpet for Rs 1.50 crore. But developers around me are selling 2 BHK apartments of 700 sq ft carpet for, say, Rs 1.05 crore," Vidip Jatia, Managing Director of Supreme Holdings and Hospitality (India) Ltd, which develops properties under the brand Belmac in Pune.

"However, post COVID-19, developers in Pune have come back to constructing 800-1,000 sq ft carpet 2 BHK because there is demand, but it is smaller than say, 10 years ago. We are selling one of the biggest 2 BHKs in Pune because we design spaces very carefully and keep waste to a minimum, allowing our flats to feel airier and more spacious. This has allowed us to create a niche for ourselves in this sector," he added.

So, what is being constructed in Pune?

While real estate experts and developers agree that the sizes of apartments being launched in Pune have gone up post-COVID-19, several developers in different micro-markets of Pune have been trying to design 2 BHK apartments in less than 500 sq ft carpet - a trend several developers say is not sustainable.

Meanwhile, Rahul Ajmera, a data enthusiast and developer in Pune, said, "Comparing the launches in 2022 to 2019 from the official data of Maharashtra RERA, the number of units of RERA carpet area 0-645 sq ft has reduced by 40 percent, while the number of units of RERA carpet area 645-1,291 sq ft has increased by 130 percent, suggesting that developers are now building larger units."

Is the Pune real estate market going the Mumbai way?

Affordability is increasingly becoming a challenge. As a result, the sizes of apartments in Pune are falling. Yet, they are larger than in Mumbai

Size of apartments in newer areas like Kharadi and Wagholi and IT hubs like Hinjewadi and Balewadi are witnessing this trend of apartment sizes getting smaller. However, in traditional areas of Pune, the picture is the opposite, say developers. (Picture credits: Mehul R Thakkar)

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