Archive · 28 Jan 2026
Developers shrink homes to combat slowdown
Homes are getting smaller because it's getting harder for people to buy them.
Prices have gone up a lot, and not as many people are buying houses.
So, the people who build homes are making them smaller and changing other things to make them more affordable.
Some are also offering special deals to help people buy.
In some places, like Bengaluru, fewer people are buying because of job worries.
But even with these changes, there aren't too many extra homes sitting unsold.
Housing sales fell 14% in 2025 due to higher prices, job losses, and geopolitical uncertainty.
Developers are reducing apartment sizes and focusing on mid-income projects to improve affordability.
Tata Realty has reduced unit sizes by about 50 square feet in one of its Bengaluru projects.
Embassy Group is balancing luxury offerings with mid-income projects, targeting prices starting at ₹60 lakh.
Developers are using pricing innovations and enhancing amenities to attract buyers, with inventory levels manageable at 14-18 months across most markets.
- Who
- Residential developers, homebuyers, investors
- What
- Developers are shrinking apartment sizes and adjusting strategies to combat a slowdown in housing sales
- When
- 2025
- Where
- Top seven cities in India, with a focus on Bengaluru, Mumbai, and the National Capital Region
- Why
- Due to a 14% decline in housing sales, 8% increase in average residential prices, job losses in the IT sector, and geopolitical uncertainty
- Sales decline
- 14% in 2025
- Price increase
- 8% in 2025
- Average apartment size reduction
- 50 square feet
- Price increase in Tata Realty projects
- 15% over the past year
- Embassy Group's mid-income project prices
- Starting at ₹60 lakh
- Job losses impact
- Dampened demand in Bengaluru
- Inventory levels
- 14-18 months across most markets
