Despite rising prices, 48% of Indians prefer to buy large 3 BHK homes

In the Indian real estate market, there has been a recent trend towards increased demand for more spacious living quarters. 2 BHK and 3 BHK apartments are gaining popularity, while the share of 1 BHKs in new projects is gradually decreasing. This raises the question of whether 1 BHK apartments are disappearing from Indian cities, but data suggests the situation is more complex.

Although demand for 1 BHKs still exists, the supply in several markets does not meet the level of demand. According to the PropIndex report by Magicbricks for the period April-June 2026, 1 BHKs accounted for 13% of total buyer demand but only 5% of available housing stock. This indicates that the number of such homes available on the market is significantly lower than the number of buyers looking for a 1 BHK.

In comparison, demand for 2 BHKs was 42%, with the available stock reaching 32%. Demand for 3 BHKs reached 37%, while this type of housing constituted 46% of the total stock, suggesting that the supply of larger apartments exceeds the demand.

These statistics do not indicate the disappearance of the 1 BHK market, but rather that its availability in new construction is relatively low.

According to the ANAROCK consumer sentiment survey for the first half of 2026, there is a trend towards choosing larger living spaces. In the study conducted among 8,320 people across 14 cities from January to June 2026, 48% of respondents chose 3 BHK, and 38% chose 2 BHK. The share of buyers preferring 1 BHK was about 9%.

Reasons for this preference include the need to work from home, the requirement for separate space for children, the presence of an extra room for parents, and planning for future needs. Thus, buyers choose housing based not only on current needs but also on long-term usage.

Reducing apartment size for developers does not lead to a proportional decrease in the entire project's cost. Land costs remain the same, as do the necessary permits for the project, elevator installation, amenities, and common areas. Furthermore, a larger apartment can be sold at a higher price, bringing the developer greater profit per unit and increasing the potential profitability of the entire project.

Sumit Choudhary, Vice President of Rise Infrastructures, notes: 'A larger home gives the developer a bigger ticket size, which increases the likelihood of strong returns from the project. While land, permit, amenity, and common area costs remain roughly the same for apartments of different sizes.'

Another advantage of building larger apartments is the sustained demand for them in the market. Since buyers in many cities prefer 2 BHK and 3 BHKs, such projects can sell faster. Preksha Singh, CEO of Agrashil Infra, states: 'There is strong demand for 2 BHK and 3 BHK homes in many markets, ensuring quick sales. When considering the economics of the entire project, larger apartments prove to be a more attractive option for developers.'

Therefore, for developers, the choice of larger configurations is driven not only by cost but also by higher prices, better potential profitability, and sustained demand.

One cannot conclude the disappearance of demand for 1 BHK based solely on all-India data, as buyer preferences vary significantly depending on the city. According to the ANAROCK survey for the first half of 2026, demand for 1 BHK in the Mumbai Metropolitan Region (MMR) was 18%, in Pune it was 10%, and in Bangalore it was 9%.

On the other hand, in markets like Ahmedabad, Hyderabad, Chennai, and Delhi-NCR, over 50% of buyers preferred 3 BHKs. This shows that the 1 BHK market remains important in those cities and areas where there is a need for compact and relatively affordable housing.

Parallel to the relatively high demand for 1 BHK in MMR, there is also a supply of smaller apartments. According to ANAROCK, in 2025, out of a total of 42,643 residential units launched in Maharashtra, the combined share of studios, 1 BHKs, and 2 BHKs was about 60%. This demonstrates that the trend is not uniform across the country; while demand for larger homes is growing in some cities, the need for compact housing persists in expensive markets like Mumbai.

For first-time homebuyers, 1 BHK can remain an important option, allowing them to limit initial investments and monthly payments, especially in regions with high land and real estate prices. However, among buyers facing rising prices, some are now considering alternatives instead of purchasing small housing.