In Mumbai, where apartment costs range from Rs 20,000 to Rs 1.60 lakh per square foot, affordability is still a major worry for potential homebuyers. Nonetheless, the cost of luxury real estate is still much greater. The billionaire Uday Kotak recently purchased 12 south-facing properties in Worli for about Rs 2.70 lakh per square foot (Rs 202 crore).

Approximately 10,000 three-bedroom (3 BHK) and 2,000 four-bedroom (4 BHK) flats were registered in 2024, while over 36,000 units were registered in 1 BHK and 2 BHK plans, according to the statistics. Furthermore, about 6,200 retail stores and office spaces were opened, accounting for around 10% of all registrations.

A total of 63,244 dwelling units were registered in 2024, which is 4% more than in 2023. This figure is slightly less than the 2022 peak of more than 75,000 units, which was the most in five years. Customers still favor small homes even if there are now more options for larger flats (the number of apartments between 650 and 1,300 square feet has almost doubled in the last four years).

Affordable housing has become a popular option for homebuyers in Mumbai's real estate market. Approximately 60% of the homes registered in 2024 in Mumbai were apartments of types 1 BHK and 2 BHK, with half of these being less than 650 square feet, according to reports from the Maharashtra Real Estate Regulatory Authority (MahaRERA). In Mumbai, where available land is scarce, this shift illustrates the need for reasonably priced, compact homes.

It is noteworthy that the quantity of one-bedroom apartments has dropped from more than 21,000 in 2022 to 15,000 in 2024. Meanwhile, with more than 1,000 units displayed in each of Kurla East, Andheri East, Borivali West, and Kandivali East, these areas have emerged as hotspots for new launches.

Even while 2024's new launches fell short of 2022's record-breaking totals, they are still greater than pre-pandemic levels, suggesting that Mumbai's real estate market is steadily rebounding. Although many individuals still prefer small residences, the increasing demand for larger apartments including those with three or four bedrooms indicates that consumer preferences are changing.

Mumbai's skyline is altering as a result of the conflict between affordability and the demand for larger homes in the city's real estate market. With the growing demand for both large and small homes, developers are well-positioned to satisfy the varied needs of future homeowners.