This paper contributes to the view that apartment housing in most cities in developing countries are different in nature and extent than that operative in developed countries. It addresses the emergence of multi-storied apartments through transformation in residential areas in Dhaka, one of the most populous cities in the world and largest metropolitan region in Bangladesh, with a particular reference to a study conducted at Dhanmondi Residential Area. It identifies the key forces and processes underlying Dhaka’s residential transformation and the advent of multi-storied apartments. Fragmentation of functions and the uses of building stocks in relation to the socio-economic aspects with local conditions were sought in the empirical survey. The increasing housing demand is being fulfilled essentially by multi-storied apartments. Thus multistoried apartments are steadily transforming the landscape and lifestyle of huge urban dwellers in Dhaka. It reveals from the study that apartment living gain much popularity and dominance of informal apartments over formal apartments are more evident. Apartment living is now well established among the people of Dhaka and Dhanmondi is the best example of the transition of single family dwelling houses to multi-storied apartments within a span of two and half decades.