109 Years to Buy a Home in Mumbai? Even for the Top Earners
A new analysis reveals that even the top 5% of earners in Mumbai would need 109 years to save enough to buy an average home, highlighting the severe housing affordability crisis in India's major cities.
MumbaiReal EstateHousing AffordabilityTop EarnersProperty PricesReal Estate MumbaiJun 25, 2025
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.
Frequently Asked Questions
Why is it so expensive to buy a home in Mumbai?
Mumbai is the financial capital of India and has one of the highest property prices. Even the top 5% of earners would need 109 years to save for an average home due to the high cost per square foot and rising real estate prices.
Which city is the most affordable for top earners in India?
Chandigarh is the most affordable city for top earners, where they can purchase an average-sized home with just 15 years of savings.
How much do top earners in Mumbai make?
Top earners in Mumbai, part of the richest 5% of the population, earn around ₹10.7 lakh per month.
What is the average cost of a home in the top seven Indian cities?
According to ANAROCK, the average cost of a home in the top seven Indian cities is ₹1.23 crore, with the NCR leading the surge in prices.
How are expatriates affecting the Indian real estate market?
Wealthy Indians living abroad are fuelling India’s luxury housing boom, expected to account for 20% of all home sales by 2025, driving up high-end property prices.
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