Is 256GB MacBook Air(M1)(16GB) enough for Mobile Application Development with the usage of apps like Xcode, Android Studio, React Native, Flutter?
Depends on your usage.
But you may need to clean up your disk space once in a while, if you need to work with more projects.
Xcode requires 50GB or more free space when installing/upgrading.
The runtimes of iOS Simulator may consume nearly 10GB for each version,
To build a small project, some amount of disk space is needed. Hundreds of simple sample code would take some GB of storage.
But you may need to clean up your disk space once in a while, if you need to work with more projects.