6 days ago
Pune real estate: 1 BHK supply hits record low as buyers seek spacious apartments, upgrades increase
Pune's real estate market is witnessing a significant dip in the supply of 1 BHK apartments, which now account for just 8% of total new launches, the lowest level recorded, according to a research report by Gera Developments. Pune's real estate market is witnessing a significant dip in the supply of 1 BHK apartments, which now account for just 8% of total new launches, the lowest level recorded, according to a research report by Gera Developments. (Picture for representational purposes only)(Mehul R Thakkar/HT)
This marks a sharp decline from 2017–18, when 1 BHK units comprised over 40% of the market. In contrast, the share of 2 BHK apartments has increased, driven by growing demand from two key buyer segments: first-time homebuyers seeking slightly larger homes and existing homeowners looking to upgrade.
The report also notes that while the launch ratio of 1 BHK units has declined, launches of 2 BHK, 3 BHK, and 4 BHK apartments have gone up, even as overall sales have softened over the past year. Developers attribute this trend to sustained demand in the 2 and 3 BHK segments, fueled by both new buyers and upgraders.
Pune real estate market clocks 88000 launches in 2024-25
The Pune real estate market reported the launch of over 88,000 units in 2024-25 (July to June) compared to over 99,000 during the same period in 2023-24.
According to the report, of the over 88,000 launches in 2024-24, only 8.7% were in the 1 BHK segment.
1BHKs accounted for a significant 48.1% share of new launches between July 2017 and June 2018. The share fell to 42.2% in 2018-19, 35.3% in 2019-20, and 26.9% in 2020-21, the report said.
By July 2021-June 2022, the share stood at 21%, before plunging to just 15.1% in 2022-23 and 14% in 2023-24. The latest data for July 2024 to June 2025 reveals that only 8.7% of new units launched were 1 BHKs, the lowest proportion seen in the eight-year period, the report said.
While the share of 1 BHK units has steadily declined, larger configurations have gained significant traction in the housing market over the past eight years, the report indicates.
Although consistently dominant, the share of 2 BHK units has fluctuated moderately, from 43.4% in 2017-18 to a peak of 54.9% in 2021-22, before easing to 48.19% in 2024-25.
The 3 BHK segment has witnessed a healthy rise, growing from just 5.5% of new launches in 2017-18 to 31.62% in 2024-25. The 4 BHK category has gradually expanded its presence, from a mere 0.4% share in 2017-18 to 4.15% in 2024-25, according to the report.
"Post COVID-19, young IT professionals, who had purchased 1 BHK apartments around 10 to 15 years ago, have upgraded to either 2 BHK or 3 BHK, and even first-time homebuyers are preferring 2 BHK and 3 BHK apartments. Also, for real estate developers, profit margins are higher in larger apartments than in 1 BHK apartments. Hence, due to lower demand from homebuyers and lower supply from developers, 1BHKs are a rare sight today in Pune," said Rahul Ajmera, Pune-based developer at Vasupujya Corporation and a data analyst.
Also Read: Pune property registrations up 16% in H1 2025 to 1.16 lakh in H1 2025; Stamp duty collections rise 19%
'1 BHK launches may not increase significantly despite sales going down'
Pune's residential real estate market recorded an 8% decline in annual home sales. According to the Gera report, sales fell from 93,737 units in June 2024 to 86,666 units in June 2025, even as average prices rose moderately by 7.3%.
The report attributed the drop in sales to a sticker shock effect, which made apartments less affordable.
Despite the decline, Rohit Gera, MD of Gera Developments, does not foresee a significant increase in the launch or sale of 1 BHK apartments in the Pune real estate market.
Also Read: Pune real estate faces 'sticker shock', housing sales decline despite lower interest rates
"People increasingly prefer larger apartments, especially after COVID-19, and this is evident from the rising share of 2, 3, and 4 BHK units in new launches, while the proportion of 1 BHK apartments has declined. In Pune, the average size of apartments has also grown over the past few years, even as the overall number of new launches has come down," Gera said.
"This trend has likely contributed to higher prices and a slowdown in sales. Looking ahead, I believe developers will need to boost the volume of new launches while reducing apartment sizes, " Gera said.
"However, this doesn't necessarily mean there will be a significant surge in 1 BHK launches in Pune, their share might only inch up to around 10%, if at all. Instead, I expect developers will focus on slightly reducing sizes across all configurations and increasing supply to help improve sales momentum," he said.
Also Read: Mumbai, Thane, Navi Mumbai, and Pune see a decline in housing sales and supply in Q2 2025
The report said the average size of apartments has increased by 25% over the last five years, from 966 sq ft in 2021 to 1,210 sq ft in 2025.
On the other hand, the average price of apartments has increased by 43% over the last five years, from ₹4,731 per sq ft in 2021 to ₹6,759 per sq ft in 2025. Therefore, the average ticket size has increased by 79%, from ₹45.69 lakh to ₹81.77 lakh, the report added.
