109 Years to Buy a Home in Mumbai? Even for the Top Earners

Owning a home in India’s biggest cities has long been a cherished dream, but for even the country’s wealthiest urban families, it’s increasingly out of reach. A new analysis, based on National Housing Board data and urban income estimates and featured in a recent Times of India report, reveals just how steep the affordability gap really is.

The report compares the cost of an average 1,184 square foot home to the annual savings capacity of the top 5% of earners in each state, assuming a national average savings rate of 30.2%. The results are startling.

Mumbai In Mumbai, Maharashtra’s financial capital and the country’s costliest housing market, even the richest urban households, earning around ₹10.7 lakh per month, would need to save for 109 years to afford an average home worth ₹3.5 crore. With a per-square-foot rate of ₹29,911 as of March 2025, the price point has pushed homeownership out of reach even for the financial elite, making Mumbai the least affordable city among 21 Indian capitals.

Gurgaon Gurgaon, Haryana’s premier urban hub and part of the National Capital Region (NCR), isn’t far behind. The top 5% of earners in the state would still need to save for 64 years to afford a similar home. Despite being a high-income region, rising real estate prices have created a massive financial barrier.

Bengaluru In Bengaluru, India’s tech capital, the affordability gap is less daunting but still significant. Here, top earners would need to save for 36 years to buy the same type of property. This marks a relatively more achievable goal compared to Mumbai and Gurgaon, but it still highlights the city’s fast-rising real estate prices.

Delhi Delhi, the national capital, mirrors Bengaluru with an estimated 35 years of savings required. Despite being home to some of the highest income households, soaring property rates have put a strain on even well-off families trying to enter the housing market.

Chandigarh By contrast, Chandigarh stands out as the most affordable capital by this measure. Top-tier households here can purchase an average-sized home with just 15 years of savings, thanks to more balanced income-to-housing price ratios.

Home Prices Continue to Rise This affordability crisis is only expected to intensify as housing prices continue to climb. According to a report by ANAROCK, home prices across the top seven Indian cities surged 23% year-on-year during April to September, bringing the average cost to ₹1.23 crore. The NCR led the surge, witnessing a 56% price jump to ₹1.45 crore. Bengaluru and Hyderabad followed with sharp increases of 44% and 37%, respectively.

Luxury Demand from Abroad Adding to the pressure, wealthy Indians living abroad are now fuelling India’s luxury housing boom. According to NoBroker.com, they are expected to account for 20% of all home sales by 2025, as demand for high-end properties surges. This growing interest in upscale real estate has further driven up prices in an already strained market.