Pune real estate: 1 BHK supply at an all-time low as buyers prefer bigger homes and upgrades rise

This is a steep drop from 2017-18, when 1 BHK units formed more than 40% of the market. In contrast, the proportion of 2 BHKs has been growing, with the increase largely led by demand from two significant homebuyer groups—first-time homebuyers looking for slightly larger homes and existing homeowners willing to upgrade.

While the 1 BHK unit launch percentage has come down, the proportion of 2 BHK, 3 BHK, and 4 BHK apartments has gone up, even as sales overall have softened in the last year, adds the report. The developers believe the demand continues to remain robust in 2 and 3 BHK categories—driven by both replacement and new demand.

In 2024–2025, the Pune real estate market will see 88,000 launches.

In 2024–2025 (July–June), about 88,000 units were introduced to the Pune real estate market, up from over 99,000 units in 2023–2024 (July–June).

According to the survey, just 8.7% of these belonged to the 1 BHK sector.

By July 2021-June 2022, the proportion was 21%, before dipping to a mere 15.1% in 2022-23 and 14% in 2023-24. The recent figures for July 2024 to June 2025 show that just 8.7% of new launches introduced were 1 BHKs, the weakest ratio witnessed in the eight-year span, the report added.

Whereas the proportion of 1 BHK units has declined consistently over the years, broader layouts have seen considerable popularity in the housing market in the last eight years, as per the report.

Though always dominant, the proportion of 2 BHK units has swayed moderately, from 43.4% during 2017-18 to a high of 54.9% during 2021-22, before settling at 48.19% during 2024-25.

The percentage of new launches in the 3 BHK category has increased significantly, rising from 0.5% in 2017–18 to 31.62% in 2024–25. The 4 BHK segment has increasingly made its presence felt, from a paltry 0.4% market share in 2017-18 to 4.15% in 2024-25, says the report.

"Young IT workers who purchased one-bedroom flats ten to fifteen years ago have moved to two- or three-bedroom apartments since COVID-19, and even first-time homeowners are opting for 2 BHK and 3 BHK apartments. Additionally, larger apartments yield a higher profit margin for real estate developers than do one-bedroom flats. Thus, because of less demand by homebuyers and less supply by

Given that higher units offer larger profit margins than one-bedroom flats, this aligns with the developer's commercial goals. The Pune realty estate market has seen a decline in 1 BHK alternatives due to a combination of strong demand, less developer supply, and decreasing customer demand.

This trend has probably helped drive prices up and slow down sales. In the future, I think developers will have to increase the number of new launches and cut apartment size," Gera said.

Yet, this does not necessarily translate into a sizeable increase in 1 BHK launches in Pune; their proportion may only rise to perhaps 10%, if any. Rather, I anticipate developers will work towards slightly trimming sizes for all configurations and boosting supply to assist in enhancing sales momentum," he added.

The report identified that the average apartment size has risen by 25% over the past five years, from 966 sq ft in 2021 to 1,210 sq ft in 2025.

Meanwhile, the average cost of apartments has gone up by 43% during the past five years, from ₹4,731 per sq ft in 2021 to ₹6,759 per sq ft in 2025. Thus, the average ticket size has gone up by 79%, from ₹45.69 lakh to ₹81.77 lakh, the report continued.