For decades, the 1 BHK apartment represented Mumbai’s most accessible entry point into homeownership. Young professionals, newly married couples, and migrant families often viewed compact one-bedroom homes as the first step toward settling in the city. However, that segment is now witnessing a sharp decline across Mumbai’s residential market.
Recent data from MahaRERA filings and industry reports indicate that the supply of 1 BHK apartments has reduced significantly since 2022. By 2025, fewer than 10,000 such units were reportedly under construction, marking nearly a 50% drop compared to the previous year and the lowest level recorded in at least five years.
The slowdown in construction has directly impacted registrations and sales. Data cited from the property platform 99acres showed registrations of 1 BHK apartments in Mumbai declining from over 21,000 units in 2022 to nearly 15,000 units in 2024.
Industry experts attribute the shift largely to rising land prices and changing developer economics. Construction costs per square foot remain broadly similar across apartment sizes, but larger homes generate substantially higher returns for developers. As a result, many projects are increasingly focused on premium and luxury configurations instead of smaller entry-level housing.
According to ANAROCK Group, average residential prices across the Mumbai Metropolitan Region rose from around Rs 13,700 per sq ft in 2024 to nearly Rs 17,100 per sq ft by mid-2025. Post-pandemic lifestyle changes, including work-from-home preferences, have also pushed demand toward larger homes with additional space.
Improved infrastructure such as the Mumbai Metro Line 3 and the Mumbai Coastal Road project, has further increased land valuations in several parts of the city, encouraging redevelopment projects focused on high-value housing.
A recent PropEquity report also highlighted a nationwide trend, stating that the supply of homes priced below Rs 1 crore across nine major Indian cities fell 36% between 2022 and 2024, while supply in the premium segment continued rising.
Government initiatives, including Pradhan Mantri Awas Yojana Urban 2.0 and Maharashtra’s Housing Policy 2025 aim to expand affordable housing supply. However, affordability concerns continue to widen for many first-time buyers in Mumbai, where compact 1 BHK homes are increasingly moving toward distant suburban locations and shrinking in size.
Source: Dailyhunt
