Pune Compact Homes Gain Ground Among New Buyers

Housing preferences are becoming increasingly divided by city, with compact homes retaining a stronger foothold in expensive metropolitan markets even as larger apartments dominate national demand. ANAROCK’s H1 2026 consumer survey shows that 1BHK demand was highest in the Mumbai Metropolitan Region at 18%, followed by Pune at 10% and Bengaluru at 9%. The pattern points to affordability and household size continuing to shape urban housing choices.

Across the 14 cities covered, however, the broader market is moving towards larger homes. About 48% of respondents preferred 3BHK properties, while 38% chose 2BHK units. Interest in homes with four bedrooms or more also rose to nearly 5% in H1 2026, from about 3% in H1 2024. The city-level variation is significant. Ahmedabad recorded the strongest preference for 3BHK homes at 57%, followed by Chennai and Delhi-NCR at 53% each and Hyderabad at 52%. Pune stood at 47%, while Bengaluru and Kolkata were at 46%. MMR had the lowest 3BHK preference among the surveyed markets, at around 39%, helping explain the relatively higher share of buyers considering smaller configurations.

For Mumbai and its surrounding urban region, the continued 1BHK demand reflects a difficult housing equation. High land and property costs can push first-time buyers towards smaller units, particularly where commuting distance, employment access and monthly loan commitments constrain household budgets. Compact homes can therefore provide an entry point into ownership, but their value depends heavily on location, transport connectivity, neighbourhood services and usable living space. Pune presents a different but related picture. Its large employment and education base continues to attract younger households, while peripheral areas offer comparatively lower entry prices. Yet moving towards cheaper edges of the metropolitan region can also increase travel costs and dependence on private vehicles when public transport and everyday services do not keep pace with housing expansion. The survey also indicates that buyers are accepting higher price points despite affordability concerns. The ₹90 lakh–₹1.5 crore bracket was preferred by 34% of respondents, while 27% selected homes above ₹1.5 crore. At the same time, affordability was identified as the leading constraint among those delaying or abandoning purchases.

This creates a wider urban planning challenge. Demand for larger homes does not automatically mean cities should expand outward without limits. Housing supply needs to balance floor space with access to public transport, employment, schools, healthcare, open areas and essential services. For developers and planners, the changing preferences point towards a more differentiated housing market. The next phase of residential growth will need to match unit sizes and prices with actual household needs while ensuring that compact or larger homes alike remain connected to efficient, inclusive and climate-resilient urban infrastructure.

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Pune Compact Homes Gain Ground Among New Buyers