Compact Living Gains Popularity: A Shift in Kerala's Housing Market
Kerala's housing market is witnessing a significant shift towards smaller homes and compact flats. This trend is driven by lifestyle changes and the need for more affordable and space-efficient living solutions.
Compact HomesReal EstateHousing MarketFlatsKeralaReal EstateJul 13, 2025
According to government statistics, the number of residential units built in the 2015–16 financial year was 2,85,585, while in 2022–23 it stood at 3,17,630. Outside Kerala, the average annual growth rate of housing units ranges from nine to ten per cent, but in Kerala, this figure was once almost double. However, examining the statistics over the eight-year period, the average growth has fallen to below two per cent.
With smaller homes and compact flats becoming the new trend, the total built-up area in the construction sector has also seen a huge decline. As per data from the Kerala chapter of the Builders’ Association of India, there has been no growth, not even by one per cent, in the built-up area. This reduction is due not only to smaller house sizes but also to the decrease in the number of units being constructed.
Changing concepts of living
Both the style and concept of housing have changed in recent years. “After COVID, Malayalis’ lifestyle and housing concept changed. With a shortage of housemaids, people had to maintain their homes themselves, which made them realise that a smaller space is sufficient. Earlier, houses were built to be passed onto future generations, but now there is an understanding that these may not even be useful to their children,” said Habitat Technology Group founder G. Shankar.
Flats offer more convenience
Flats are attracting more residents because of the facilities and safety they offer. “In flats, facilities including medical services are available for residents. There is also assured security and essential services. Compared to land prices, flats are more affordable,” said K. Madhusoodanan, former secretary of BAI Thrissur Chapter.
The shift towards smaller homes and compact flats is not just a trend; it is a response to the changing needs and preferences of the population. As more people prioritize convenience, affordability, and sustainability, the future of housing in Kerala looks increasingly compact and efficient.
Frequently Asked Questions
Why are smaller homes and compact flats becoming more popular in Kerala?
Smaller homes and compact flats are gaining popularity in Kerala due to lifestyle changes, affordability, and the availability of essential amenities and security.
How has the construction of new houses in Kerala changed over the past few years?
The construction of new houses in Kerala has slowed down, with a shift towards smaller homes and flats. The average growth in the number of residential units has fallen below two per cent.
What are the main benefits of living in a flat in Kerala?
Living in a flat in Kerala offers benefits such as access to essential amenities like medical services, enhanced security, and more affordable housing options compared to independent homes.
How has the COVID-19 pandemic influenced housing trends in Kerala?
The COVID-19 pandemic has influenced housing trends in Kerala by changing people's lifestyles and preferences. The shortage of housemaids has led to a greater appreciation for smaller, manageable living spaces.
What is the role of the Builders’ Association of India in Kerala's housing market?
The Builders’ Association of India (BAI) plays a crucial role in monitoring and analyzing the housing market trends in Kerala, providing data and insights that help understand the shifts in the construction sector.
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