Mumbai’s residential real estate market witnessed a sharp decline in studio apartment launches in 2025, with only 790 units introduced across the city, the lowest annual figure in at least five years, according to the Maharashtra Real Estate Regulatory Authority (MahaRERA). Studio apartments accounted for a mere 2% of the 42,643 total residential units launched during the year, highlighting a significant shift in the city’s housing supply mix.
In contrast, 1 BHK and 2 BHK apartments continued to dominate new launches, together representing nearly 60% of all units. Higher-bedroom formats such as 2.5 BHK, 3 BHK, and larger homes also contributed to the remainder of the supply, reflecting developers’ preference for configurations with stronger demand and better absorption prospects. Analysts say the trend indicates that builders are prioritising projects that offer higher revenue per square foot, even as overall housing supply in India’s largest residential market slows down.
Several factors are driving the contraction in studio launches. Scarcity of developable land, rising construction costs, and evolving buyer preferences are prompting developers to allocate space to larger apartments. Many homebuyers are seeking flexible living spaces with distinct areas for living, sleeping, and working, rather than compact open-plan studios, further reducing demand for micro-units traditionally aimed at first-time buyers and investors.
The subdued launch of studio units mirrors a broader slowdown in Mumbai’s residential market. Developers are increasingly adopting adaptive product strategies, focusing on mid-sized and larger apartments amid affordability pressures and land economics challenges. While the decline presents difficulties for the studio segment, it also underscores structural shifts in the city’s housing landscape, as developers adjust to changing market dynamics and buyer expectations.
Source: Hindustan Times
