Mumbai homebuyers are showing stronger preference for compact housing formats due to high property prices and limited land availability, according to recent surveys. Colliers’ 2026 survey highlighted demand for right-sized homes, while experts said location, connectivity and efficient planning are key factors. Smaller 1 and 2BHK units are being viewed as practical options in the city.

Mumbai Homebuyers Prefer Compact Homes Over Bigger Flats As High Prices And Limited Space Shape Housing Demand | AI

Mumbai: When it comes to housing, Mumbai remains heavily driven by affordability and spatial constraints, anchoring demand toward compact formats. "In Mumbai, land is scarce and extremely expensive, with a limited scope for expansion. People strongly value location near the work place, proximity to railway station, metro, schools and established neighbourhood. In Mumbai, challenge is not 'how to make apartments smaller' it is 'how to make smaller apartments feel larger by better planning', said Manoj Daisaria, former president of Practising Engineers, Architects and Town Planners Association.

Surveys Show Preference For Compact Housing Formats

These sentiments of Mumbai homebuyers reflected in two recent surveys. Colliers Homebuying Sentiment Survey 2026 states that Mumbai homebuyers strongly prefer compact and right-sized housing configurations (like smaller 2BHKs), whereas cities like Delhi-NCR, Bengaluru and Hyderabad show a distinct preference for larger and more spacious units. While Consumer Sentiment Survey – H1 2026 by Anarock stated that Mumbai Metropolitan Region had lowest preference among the surveyed cities for 3BHKs, while Ahmedabad had highest preference followed by Chennai, Delhi-NCR, Hyderabad, Pune, Bengaluru and Kolkata.

Ramesh Prabhu, chairman of Maharashtra Societies Welfare Association said, "Who doesn't want to stay in a bigger, spacious house? But in Mumbai, it all boils down to pricing. Due to various factors aligned, Mumbai's real estate prices will never go down. It may come to some stagnation in next four-five years due to heavily cluster redevelopment projects coming up which will increase the supply. But property prices in Mumbai will continue to remain higher than other major cities."

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Compact Homes Seen As Optimisation, Not Compromise

"The property market of Mumbai has had a unique blend of factors like high property values and limited space availability, along with high demand for houses that are conveniently situated in a connected location. Thus, preference for smaller and better-sized houses in Mumbai should not be seen as an adjustment to lifestyle but rather optimization of size and functionality," opined Aakash Patel, Director, Atul Projects.

"Indeed, a properly planned 1 or 2BHK can provide better value to many buyers in Mumbai than a bigger house, which involves compromises on convenience of access and connectivity. At the same time, we see a shift in customer preferences and the importance that buyers attach to layout, lighting, amenities, connectivity, and quality of life in the available space," Patel added.

About 62% of potential homebuyers across major Indian markets prefer 2 & 3 BHK apartment configurations. While larger and spacious units are preferred more in cities like Delhi NCR, Bengaluru & Hyderabad, Mumbai continues to demonstrate strong demand for compact and right-sized units.

– Vimal Nadar, National Director and Head of Research, Colliers India

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