- Rising rents in Bengaluru are increasing the demand for smaller flats.
- Developers are also inclined towards constructing these smaller flats.
In the IT city of Bengaluru, rents are reaching sky-high levels. Even Mumbai, the financial capital of the country, is seeing good rent prices here. For example, a 400-square-foot semi-furnished single-bedroom apartment in the HSR Layout is renting for Rs 35,000, which reflects the current situation. As a result, many people are now opting for single-bedroom homes, adopting the mindset of adjusting to smaller spaces to avoid the heavy rent burden.
In Bengaluru’s city center and IT corridors, the demand for single-bedroom apartments has significantly increased. Especially, students coming for job opportunities and young professionals relocating closer to their workplaces are leaning towards these units. While there has been high demand for these units, developers have been reducing their construction over the past two years. However, these apartments continue to attract both end-users and investors. With stable rental demand and rental yields above 5%, 1 BHK units have become a popular choice.
Ten years ago, single-bedroom apartments were quite rare in Bengaluru, and those that existed were relatively spacious. But this trend has now changed. Over time, the size of these apartments has been shrinking. In 2023, the average carpet area for a 1 BHK was 380 square feet, but by 2024, it has reduced to 350 square feet. When it comes to rental returns, 1 BHK apartments are more profitable than 2 BHK units. Typically, the rent for a 2 BHK flat ranges from Rs 25,000 to Rs 30,000 per month. However, if the same 2 BHK is converted into two separate 1 BHK units, the rent for each unit can be at least Rs 20,000, which means the total rental income increases even though the carpet area decreases. In response to this, developers are planning to optimize land usage in high-demand areas by focusing on building more 1 BHK units.
Two years ago, the typical size of new 1 BHK apartments in Bengaluru ranged between 650-700 square feet, with some even going up to 1,000 square feet. However, due to recent developments by Grade A builders, 1 BHK apartments are now being offered in the range of 550-650 square feet. At the same time, independent builders are offering smaller 1 BHK apartments in the range of 350-400 square feet. Currently, 1 BHK apartments account for nearly 10-15% of all inventory in gated projects across Bengaluru.
