Many people want to buy a house in Mumbai, but due to inflation, buying a house is out of reach for the common man. Recent data has shown that to buy a house in Mumbai, the top 5% of income earners will have to save for 109 years and set aside 30% of their income.
The National Housing Board (NHB) has revealed that even upper-class families in Maharashtra will have to save for a century to buy a house in Mumbai. This is because Mumbai is the most expensive real estate in India.
The average price per square foot in Mumbai is Rs 26,975. This price is on par with real estate in Dubai. Last year, the land price per square foot in Dubai was Rs 27,884.
The monthly per capita income of the top 5% of urban households in Maharashtra is Rs 22,352, which is equivalent to an annual income of Rs 10.7 lakh for a family of four.
With a savings rate of 30.2%, these families are saving around Rs 3.2 lakh per year. As per a TOI report, by March 2025, properties with a carpet area of 645 sq ft to 1,184 sq ft will cost Rs 29,911 per sq ft.
As a result, a 1,184 sq ft house in Mumbai costs over Rs 3.5 crore. This will require the richest families to save for 109 years to afford it. In Haryana and Gurugram, the richest families will need to save for a house for over 50 years.
Chandigarh is the cheapest city, where it takes around 15 years to save to buy a house. In Maharashtra, the top 5% of urban families face a major hurdle, with Mumbai taking over a hundred years to save enough for a house.
Cities like Gurgaon and Bhubaneswar also have a savings period of over 50 years. Out of the 21 state capitals, 10 require more than 30 years of savings. Chandigarh and Jaipur require less than 15 and 20 years to buy a property, respectively.
Share
Tweet
