Some observations from analysis of google keyword search trends:
The sharp drop in blue and yellow lines corresponds with the COVID first wave. Let’s call the preceding period Pre-COVID and subsequent period post-COVID
* Interest in 1 bhk declined about 20% on average in post COVID vs pre COVID
* Interest in 2 bhk increased about 13% in post COVID
* interest in 3 bhk increased about 45% in post COVID
Also note how interest in 3 bhk is a lot less volatile compared to smaller flats. 3-bed buyers tend to be older and / or more settled in their careers making them less vulnerable to business cycles and shock events like COVID.
There is no doubt that 1 bhk is deficient as a basic home for a family. It is suited only to a limited or transient audience such as students, couples yet to start family, expats etc. Such requirements are best met by renting rather than buying. Developers would probably do better by building and offering their entire 1 bhk
Stock only on rental basis thereby also holding better control on the market rents. Such assets could then be REITised and offered to fund managers.
