Want home in Mumbai? It'll take 109 years of savings
What's the story
Owning a home in Mumbai is extremely challenging, even for the wealthiest families in Maharashtra. A recent study has revealed that the top 5% of earners in the state would have to save for a whopping 109 years just to afford an average-sized house in the city. This makes Mumbai India's least affordable market among 21 major cities.
Affordability gap
How the study was conducted
The study, which uses data from the National Housing Board (NHB), looked at the cost of an 1,184 square foot home against annual savings of Maharashtra's top 5% households. These families have an average annual household income of ₹10.7 lakh and can save around ₹3.2 lakh per year, assuming the national savings rate of about 30%. However, with Mumbai's average home costing over ₹3.5 crore, it would take them decades to afford one.
Urban affordability
Other cities with similar problems
The problem of housing affordability isn't just limited to Mumbai but is also a major issue in other Indian cities. In Gurugram, Haryana's largest urban center, the top 5% of earners would need 64 years of savings to buy an average-sized home. Bengaluru comes next with a 36-year wait period while Delhi requires 35 years of dedicated saving. Chandigarh emerges as India's most affordable capital where just 15 years of savings would be enough for a small home.
Public response
Study draws mixed reactions on social media
The study has drawn mixed reactions from social media users. Some have questioned the accuracy of NHB's data, while others have suggested that it might be time to leave expensive cities behind. "Wild how even the top earners can't catch up with Mumbai's insane housing costs... this market's broken for everyone," one user tweeted in reaction to the report.
Market trends
Luxury home demand drives up property prices in India
The rising demand for luxury homes has driven up property prices in major Indian cities. According to a report by ANAROCK, the average house price in the top seven cities, including New Delhi and Mumbai, rose by 23% from last year to ₹1.23 crore during April-September. Wealthy Indians living abroad are driving this trend as they are expected to account for nearly one-fifth of all home sales by 2025.