Where have all the 1 BHKs gone?

The 1 BHK still has buyers, so why are builders ditching it? Is the shift towards 2 and 3 BHKs changing the economics of housing?

In Short

• 1 BHK demand is 13% but supply only 5%
• Builders prefer 2 and 3 BHKs for higher revenue
• 1 BHK still relevant for budget buyers despite shrinking availability

The 1 BHK is becoming a strange thing in India's housing market.

People are still looking for it. But builders are increasingly choosing not to build it.

According to Magicbricks' PropIndex for April-June 2026, 1 BHKs accounted for 13% of buyer demand but only 5% of available housing inventory.

That is quite a mismatch.

And it gets more interesting when you look at what is replacing them. Two BHKs accounted for 42% of buyer demand and 32% of inventory, while 3 BHKs made up 37% of demand and 46% of supply. Homes with 3+ BHKs accounted for 8% of demand and 17% of available inventory.

SO WHERE HAS THE 1 BHK GONE?

Perhaps the better question is: why is the market moving away from a home that people are still looking for?

A teacher in Gandhinagar went looking for a house and eventually bought a 3 BHK.

“With children growing up, I wanted extra space for their studies, a separate room for guests, and more privacy for the family,” the buyer says.

In Pune, an IT professional also went bigger.

“Work-from-home was the main reason. I wanted a dedicated office space without disturbing the family, along with a bigger living area,” the buyer says.

And in Jaipur, Narendra Sharma, a retired Subedar Major and former Army officer, bought a 3 BHK as an investment.

“I looked at it mainly as an investment. Jaipur is developing rapidly, and I see good potential for future growth and appreciation,” he says.

Different buyers. Different reasons.

But all three ended up buying something larger than the 1 BHK that has traditionally been the entry point into the housing market.

That shift isn't happening only because buyers suddenly want bigger homes.

There is money behind it too.

THE 1 BHK DOESN'T WORK AS WELL FOR THE BUILDER

For a developer, making an apartment smaller doesn't make the entire project proportionately cheaper.

The land still costs the same. Approvals still need to be obtained. Lifts, amenities and common areas still have to be built.

But a larger apartment can command a higher ticket price.

“A larger home gives the developer a higher ticket size and in turn, stronger revenue potential from the project. At the same time, costs such as land, approvals, amenities and common areas remain broadly similar across configurations,” says Sumit Choudhury, VP, Rise Infraventures.

There is another advantage to building bigger: buyers are already showing up for them.

“Moreover, there is also strong demand for 2 BHK and 3 BHK homes in many markets, which supports faster sales. When you look at the overall project economics, larger configurations offer a more attractive proposition for developers,” says Preksha Singh, CEO, Agrasheel Infra.

So the developer's dilemma isn't really a dilemma.

A 3 BHK can bring in more money. There are buyers willing to pay for it. And many of the costs of developing the project remain broadly similar.

The 1 BHK, by comparison, is cheaper to sell.

And that matters when land is expensive.

THE CHEAPEST HOME IS ALSO GETTING HARDER TO BUILD

This is where the 1 BHK runs into the larger affordable-housing problem.

Santhosh Kumar, Vice Chairman, ANAROCK Group, says affordable housing — homes priced below Rs 40 lakh — has seen both declining demand and falling supply.

“Soaring land, construction and compliance costs have pushed developers towards higher-end projects,” he says.

Affordable projects typically offer margins of 10-12%, according to Kumar, compared with 25-30% or more for premium homes.

“Most disposable income is headed for premium homes, so developers see no sense in addressing less profitable segments,” he says.

That makes the 1 BHK particularly vulnerable.

It sits at the lower end of the market, where construction is getting more expensive and returns are relatively smaller.

But the buyer hasn't disappeared.

SOME BUYERS ARE HAPPY TO PAY FOR THE EXTRA ROOM

This is the other half of the story.

ANAROCK's Consumer Sentiment Survey for H1 2026 found that 48% of homebuyers preferred a 3 BHK, while 38% preferred a 2 BHK. The survey covered 8,320 respondents across 14 cities.

The share preferring 4 BHK and larger homes touched nearly 5%, up from around 3% in H1 2024.

The preferred budget has moved up too, with the Rs 90 lakh-Rs 1.5 crore range emerging as the most preferred segment.

And the reasons are visible in the homes people are buying.

The Gandhinagar family wants space for children.

The Pune professional wants somewhere to work.

For other buyers, an additional bedroom may mean a room for parents, a study or simply more space at home.

Sandeep Chhillar, Founder and Chairman, Landmark Group, says buyers are increasingly choosing 2+1, 3 BHK and larger configurations for flexibility.

“The consumer desire is undoubtedly shifting towards larger, well-planned homes, especially among end users. Buyers are choosing 2+1, 3 BHK, and higher configurations for greater flexibility,” he says.

“Suddenly, the extra space is crucial for working from home, but also for children, parents, study, or wellness.”

But the pull towards larger homes isn't only about having an extra room.

The preference for bigger homes is also being driven by connectivity and convenience, dedicated spaces for work, long-term planning and wealth management, says Amar Sarin, MD & CEO, TARC Limited.

So yes, there is a genuine shift towards larger homes.

But there is still a sizeable group for whom bigger is not necessarily better.

THEN THERE IS THE BUYER WHO WANTED A 1 BHK

Surbhi Malhotra, a data analyst from Indirapuram, Ghaziabad, had considered a 2 BHK.

She chose the 1 BHK.

“The biggest factor was the lower entry cost of a 1 BHK, along with the fact that it can still offer good rental and resale potential if the location is right,” she says.

She wanted to keep the initial investment, EMI and maintenance costs manageable.

Her choice is important because it brings us back to the number we started with.

13% demand. 5% supply.

There is clearly a market for the smaller home.

The problem is that the market is producing fewer of them.

Rajjath Goel, Managing Director, MRG Group, says first-time buyers are increasingly looking beyond the smallest configuration and thinking about whether the home will work for them several years from now.

“The first home has a special place and is purchased with a long-term view. First-time buyers are therefore looking beyond the smallest available configuration and asking whether the home will work for them a few years from now,” he says.

That explains why some buyers are stretching for a bigger home.

But Surbhi's decision explains why the 1 BHK isn't going away either.

For some people, the first home doesn't need to accommodate a future child, a home office or visiting parents.

It just needs to fit the budget.

And that is the awkward position the 1 BHK finds itself in.

It is still wanted. It is just becoming harder to find.

Developers have more reason to build larger homes. Buyers who can afford them are increasingly choosing larger homes too.

But for the buyer looking for a relatively affordable way into homeownership, the 1 BHK remains relevant.

The problem is not that India has stopped wanting the 1 BHK.

It is that the housing market is increasingly giving buyers reasons — and fewer options — to look beyond it.

- Ends