by THO
About two months ago, Srinivas Gowda relocated to Bengaluru’s prime HSR Layout to be closer to his workplace. “The rents here are insane. I saw a semi-furnished 400 sq ft one-bedroom apartment costing around ₹35,000 per month. I thought that rents were high in Mumbai, but I’m surprised to find this in Bengaluru,” Gowda said.
Demand for 1BHK apartments in Bengaluru’s city centre and IT corridors remains strong, particularly among students and young professionals relocating for job opportunities. Despite developers reducing the size of these units over the past two years due to high demand and limited inventory, these apartments continue to attract both end-users and investors. With consistent rental demand and rental yields exceeding 5%, 1BHKs have become an ideal investment choice.
A decade ago, 1BHK apartments were rare in Bengaluru, and the few available were relatively spacious. New launches are significantly smaller today but command higher rents, said Sunil Singh, Director of Realty Corp.
According to data from SquareYards, the average carpet area of newly launched 1BHK apartments in Bengaluru has decreased by approximately 8%, dropping from 380 sq ft in 2023 to 350 sq ft in 2024.
Redevelopment of existing projects in the city centre
Sopan Gupta, Principal Partner, Square Yards said that the 1BHK units appeal to end-users and investors, given their relatively lower ticket size and consistent rental demand from working professionals.
In Bengaluru, 1BHK apartments typically offer more than 5% rental yield, whereas 2BHK units generate around 3-4%, making them an attractive investment option.
“The demand for 1BHKs in the city centre and standalone areas has surged by at least 20% in the past year. As a result, many landlords are redeveloping their existing properties into multiple 1BHK units,” said Kiran Kumar, Vice President of Hanu Reddy Realty.
Real estate experts note that a 2BHK apartment is typically rented for ₹25,000-30,000 per month. However, if developers convert them into two separate 1BHKs, they can charge at least ₹20,000 per unit, doubling their rental income. This also means the total carpet area of each 1BHK is reduced by half.
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Developers optimising layouts to maximize land utilization in areas with high demand
Around two years ago, the size of newly launched 1BHK apartments in Bengaluru typically ranged between 650-700 sq ft, with some even reaching 1,000 sq ft, said Singh. However, recent developments by Grade A builders now offer units between 550-650 sq ft. Meanwhile, the standalone builder floors feature 1BHK apartments that are as small as 350-400 sq ft.
“Several factors could contribute to this shift, including developers trying to optimize layouts to maximize land utilization in areas with high demand for compact configurations. The future launches will determine whether this is a long-term market shift or a short-term adjustment,” Gupta added.
Real estate experts highlight that this trend coincides with rising land prices in cities like Bengaluru. Manjesh S. Rao, Chief Real Estate Officer at BrokerInBlue, explained, “With increasing costs, developers cannot price a 1BHK above ₹50-60 lakh, especially for units sized at 450-500 sq ft. As a result, most developers are reducing unit sizes to keep prices within an affordable range for buyers.”
Currently, 1BHK apartments make up approximately 10-15% of all inventories in gated projects across Bengaluru, Kumar said.
