Are 1 BHK flats still selling in India—or are developers stopping them?

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.

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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.

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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.

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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

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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)

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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

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