Are 1 BHK flats still selling in India—or are developers stopping them?
Yes, 1 BHK flats are still selling in the
Indian real estate market. They remain relevant for first-time
buyers, single professionals, small families, and investors—especially in
high-cost cities where ticket size is the biggest barrier.
But developers are increasingly reducing
new 1 BHK supply in many micro-markets because demand (and
profitability) has shifted toward 2 & 3 BHK after Covid, with buyers
prioritizing space for work-from-home, family needs, and lifestyle upgrades.
This “bigger-home” preference is widely reflected in consumer research and
city-level launch data.
What the data suggests (real examples)
1) Mumbai: 1 BHK is still being launched (not
“stopped”)
Mumbai is a great counterpoint to the “1 BHK is dead”
narrative.
According to MahaRERA launch data (2025) reported
by Hindustan Times:
- Total
launches in 2025: 42,643 units
- 1
BHK share: 23%
- 2
BHK share: 34%
- Studios
+ 1BHK + 2BHK together were nearly 60% of launches
Meaning: Developers haven’t
stopped 1 BHKs in Mumbai—because the city still has a huge affordability-led
buyer base. But even here, the medium-term trend shows rising attention to
larger homes.
2) Pune: 1 BHK supply has fallen sharply
Pune illustrates the “shift away” very clearly.
Hindustan Times (citing a Gera Developments research
report) notes:
- 1
BHKs are now ~8–8.7% of new launches (record low)
- Down
from 40%+ share in 2017–18
- Developers
cite higher margins and buyers upgrading to 2/3 BHK
Meaning: 1 BHK demand may
exist, but launch economics + buyer upgrades are pulling supply toward
larger configurations.
Why developers are reducing 1 BHK launches
(even when they still sell)
1) India’s housing demand is becoming more
“value-led” than “volume-led”
Across top cities, developers are leaning more toward
mid/high/premium segments, and the affordable segment’s share is shrinking.
ANAROCK’s India residential annual update (2024)
highlights:
- Luxury
(₹1.5–2.5 Cr) + ultra-luxury (>₹2.5 Cr) together accounted for ~30%
of launches, up from ~22% in 2023
- Affordable
(<₹40 lakh) dropped to ~16% of launches
This is crucial because 1 BHK is most viable in
affordable/mid segments. If that pipeline shrinks, 1 BHK supply naturally
tightens.
2) Consumers are voting for bigger homes
ANAROCK’s Homebuyer Sentiment Survey (H1 2025) signals:
- A
“pronounced move toward premium housing”
- Affordable
demand sliding (survey notes affordability dissatisfaction around
location/design/unit size)
- 45%
of respondents prefer 3 BHK
This shift doesn’t erase 1 BHK demand—but it reduces
its dominance.
3) Unit economics favor 2/3 BHK in many
projects
In several markets, developers can achieve better:
- Price
per sq ft realization
- Absolute
margin per unit
- Sales
velocity with end-users upgrading
- Brand
positioning (amenity-led “premium” products)
So even if 1 BHK sells, the question becomes: does it
sell “as profitably” as 2 BHK? In many micro-markets, the answer is no.
So what’s the real situation in 2026?
The balanced truth:
1 BHK isn’t disappearing. It’s becoming more
location- and use-case-specific.
You’ll still see 1 BHK supply in:
- High
land-cost cities (MMR especially)
- Investor-heavy
corridors
- Workforce
housing catchments (near major employment hubs)
- Redevelopment
projects with compact layouts
- Transit-oriented
pockets where affordability is tight
You’ll see less 1 BHK supply in:
- Upgrade-driven
cities/micro-markets where buyers want more space (Pune is a strong
example)
- Premiumizing
corridors where developers are pushing 2/3 BHK to maximize returns
What this means for each stakeholder
If you’re a buyer
- In
many cities, 1 BHK choice sets may shrink, which can support
prices/rents in the resale market (depending on location).
- If
your budget is tight, consider:
- older
1 BHK resale in strong connectivity zones
- compact
2 BHK “small-format” options (often positioned as “more livable than 1
BHK”)
If you’re an investor
- 1
BHK can still be a strong rental product where:
- tenant
base is young/working
- commute
and connectivity are strong
- rent-to-price
makes sense
- But
be careful: “1 BHK works” is micro-market truth, not a universal
rule.
If you’re a developer / real estate marketer
Instead of “Should we stop 1 BHK?”, ask:
1.
Who is the buyer here—end-user or
investor?
2.
What’s the absorption of compact units
in this exact micro-market?
3.
What is the margin delta vs compact 2
BHK?
4.
Can we design a ‘right-sized’ compact 2
BHK that captures 1 BHK buyers?
Often the winning strategy is:
- limited
1 BHK inventory (to capture entry demand) + core 2
BHK mix (for profitability and wider demand)
Bottom line (LinkedIn-ready takeaway)
1 BHK flats are still selling in India, and
they haven’t been “stopped” across the board.
But new supply is tightening in many cities because buyer preferences
and developer economics are shifting toward 2 & 3 BHK, alongside a
broader premiumization trend in launches and consumer demand.
© Dhananjay Parmar
✆ +91
9223497891
