Mumbai Studio Apartment Supply Plummets to Five-Year Low in 2025

Mumbai’s real estate market is known for high prices and compact living spaces. Recently, a viral video showing a very small apartment priced at ₹1.2 crore restarted the discussion around shrinking homes in the city. Against this backdrop, official data shows a clear trend. Studio apartment launches Mumbai have dropped to their lowest level in five years. In 2025, only 790 studio apartments were launched across Mumbai, highlighting a major shift in housing preferences and development strategy.

According to Maharashtra RERA data, just 790 studio apartments were launched in Mumbai in 2025. This is the lowest number recorded in the past five years. In comparison, 832 studio units were launched in 2024, 1,704 units in 2023, 1,129 units in 2022, and 1,518 units in 2021. This steady decline clearly shows reduced focus on studio homes within the Mumbai real estate market.

In 2025, Mumbai saw a total of 42,643 residential unit launches. Studio apartments made up only 2 per cent of this supply. Despite their low share, smaller homes still play a role in the market. When combined, studio, 1 BHK, and 2 BHK apartments accounted for nearly 60 per cent of total launches. This shows that while studios are declining, demand for smaller homes has not disappeared entirely.

The data shows a clear preference shift among developers. In 2025, about 34 per cent of launches were 2 BHK apartments. Around 23 per cent were 1 BHK units, while 19 per cent were 3 BHK homes. Only 4 per cent were 4 BHK apartments. Larger homes such as 2.5 BHK, 3 BHK, and 4 BHK together formed around 23 per cent of total launches. This confirms changing buyer demand within Mumbai housing launches.

The decline in studio apartment supply is linked to changing buyer behaviour after COVID-19. Homebuyers now prefer larger homes with more usable space. Work-from-home needs, family comfort, and lifestyle changes have pushed demand towards bigger apartments. Developers have responded by focusing more on 2 and 3 BHK homes rather than compact homes Mumbai.

According to industry experts, developers are adjusting to market demand rather than forcing supply. Smaller units like studios and 1 RK apartments are harder to sell at current land and construction costs. Pricing pressure makes studios less attractive for both developers and buyers. As a result, studio apartment launches Mumbai have gradually reduced over the last five years.

One major challenge with studio homes is pricing. Even small apartments in Mumbai often cross ₹1 crore. Buyers expect better layouts and usable space at these price points. Poor space planning reduces buyer interest. As land costs rise, developers prefer selling fewer but larger homes to maintain profitability. This directly affects the supply of studio units in the Mumbai real estate launches 2025 data.

Larger apartments offer better resale value and broader buyer appeal. Families, end-users, and long-term investors prefer homes that can adapt to changing needs. This makes 2 and 3 BHK units safer options for developers. As a result, studios are slowly losing relevance in new project planning across Mumbai housing trends 2025.

Apart from residential units, Mumbai also saw the launch of over 5,600 office spaces and shops in 2025. These accounted for about 13 per cent of total real estate launches. This shows that developers are also diversifying into commercial assets while being selective about residential configurations, especially small apartments.

Despite declining supply, demand for smaller homes still exists. Young professionals, single occupants, and investors continue to look for affordable options. However, affordability in Mumbai is limited. Without realistic pricing, studios struggle to attract buyers. This imbalance affects studio apartment supply in Mumbai 2025.

Studio apartments are often confused with affordable housing. However, in Mumbai, studio homes are not necessarily affordable. High land prices and compliance costs keep prices elevated. Buyers seeking affordability may prefer distant suburbs or larger but better-planned 1 BHK homes over cramped studio units.

Studio apartments are unlikely to disappear completely. However, their role will remain limited unless pricing improves or layouts become more practical. Redevelopment projects and transit-oriented developments may still include studios in small numbers. For now, developers remain cautious about adding them to new projects.

For buyers, reduced studio supply means fewer entry-level options in prime locations. Buyers may need to adjust budgets or look at peripheral areas. Understanding market trends helps buyers make informed decisions within the Mumbai real estate market.

From an investment perspective, studios offer limited flexibility. Rental demand exists, but capital appreciation may be slower compared to larger homes. Investors increasingly prefer 1 and 2 BHK units due to better liquidity and resale demand.

The decline in studio apartment launches reflects a more mature market. Developers are responding to real demand rather than pushing unsuitable products. This shift may improve overall housing quality and buyer satisfaction in the long run.

Studio apartment launches in Mumbai fell to a five-year low of just 790 units in 2025, according to MahaRERA data. Rising land costs and changing buyer preferences have pushed developers to focus on larger homes. While smaller apartments still form a major part of total launches, studios now account for only a small share. Post-pandemic lifestyle changes and pricing challenges have reduced studio demand, reshaping Mumbai’s housing supply and development strategy.