Mumbai Housing Rates Now Match Dubai; Requires 109 Years' Savings For Affordability – Reports
Mumbai: Many people aspire to purchase a home in the center of the 'city of dreams,' but their plans are increasingly impacted by the ongoing rise in inflation. Recent data reveal that to purchase a home in Mumbai, the highest 5% income earners would need to save for 109 years, setting aside 30% of their earnings.
The National Housing Board (NHB) reveals that even the top 5% of families in Maharashtra must save for a century to buy a home in Mumbai, which currently has the most expensive real estate in India, averaging Rs 26,975 per square foot. This cost competes with Dubai's real estate, where land was valued at Rs 27,884 per square foot the previous year.
The monthly per capita income for the highest 5% of urban households in Maharashtra is Rs 22,352, which equates to an annual income of Rs 10.7 lakh for a family of four. With a saving rate of 30.2%, these households set aside around Rs 3.2 lakh annually. Data from NHB indicates that by March 2025, properties with carpet areas ranging from 645 sq ft to 1,184 sq ft are priced at Rs 29,911 per square foot, according to a report by TOI.
As a result, a 1,184 sq ft residence in Mumbai is priced at more than Rs 3.5 crore, compelling the wealthiest 5% of families to save for 109 years to afford it. In Haryana and Gurugram, the richest 5% would require more than 50 years of savings for comparable housing. Chandigarh is the least expensive city, requiring approximately 15 years of saving to purchase a home.
In Maharashtra, the top 5% of urban families encounter a significant obstacle, requiring over a hundred years to accumulate enough savings for housing in Mumbai. Cities such as Gurgaon and Bhubaneswar also follow suit, with saving times surpassing 50 years. Out of 21 state capitals, 10 need more than 30 years of savings, while Chandigarh and Jaipur take considerably less time, at 15 and under 20 years, respectively, to purchase comparable properties.
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