Mumbai’s rising property prices are leading to a decline in the number of small homes. According to data, 63,244 new homes were launched within Mumbai’s limits in 2024, out of which only 25% (15,098 units) were 1 BHK apartments.
In contrast, in 2021, out of 55,995 new launches, 35% (19,594 units) were 1 BHK apartments. Data from MahaRERA indicates that the percentage of 1 BHK homes is declining year after year.
Parking Issues Impacting Demand for Small Homes
One of the primary reasons behind the decreasing number of small homes is the parking crisis. Real estate analyst Rahul Ajmera states that no one in Mumbai wants to buy a house without parking. Additionally, easy access to home loans is encouraging people to opt for larger homes. Rahul Ajmera further explains that the cost difference between small and large homes has reduced significantly. Given a slight budget increase, buyers prefer bigger homes.
Kamal Khetan, CMD of Sunteck Group, highlights that while the luxury housing market is thriving, the affordable segment is facing several challenges, pushing developers toward bigger units.
According to Prashant Sharma, President of NAREDCO (Maharashtra), people’s approach to buying homes has changed post-pandemic. More buyers are now planning for bigger homes.
Notably, in 2024, the highest number of new home launches took place in Borivali (23,577 units), followed by Kurla (20,330 units) and Andheri (10,854 units).
