Kerala`s housing market trends towards smaller homes & compact flats due to lifestyle changes & affordability.

Thrissur: Kerala’s housing landscape is undergoing a significant transformation, with recent figures indicating a growing shift towards smaller homes and compact living spaces. The construction of new houses is not keeping pace with previous trends, and independent homes are steadily losing popularity. In contrast, more people are turning to flats, especially those offering essential amenities such as clinics. Larger apartments are also falling out of favour, making way for affordable and space-efficient housing solutions.
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.
Published: 13 Jul 2025, 12:52 pm IST
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