109 Years to Buy a Home: Mumbai Real Estate Challenges Even the Wealthy
In Mumbai, the top 5% of earners would need to save for 109 years to afford an average-sized home, making it the least affordable market among 21 Indian capitals. The data highlights the growing disparity in housing affordability, even for the wealthiest urban households.
Real EstateHousing AffordabilityMumbaiProperty PricesUrban HouseholdsReal Estate NewsJun 24, 2025
According to new data, the top 5% of earners in the state would need to save for 109 years to afford an average-sized house in the city—making it the least affordable market among 21 Indian capitals.
The analysis, derived from National Housing Board (NHB) data and urban income estimates and published in a TOI report, compares the cost of a 1,184 sq ft home to the annual savings of the top 5% of earners in each state. In Maharashtra, that group earns roughly ₹10.7 lakh a year per household. Assuming a 30.2% savings rate—the national average—they can save about ₹3.2 lakh annually. Meanwhile, the average cost of such a home in Mumbai is over ₹3.5 crore, based on a per-square-foot rate of ₹29,911 in March 2025.
The gap is similarly stark in other cities. In Gurgaon, Haryana’s largest city, the top 5% would need to save for 64 years. It’s over 50 years in Bhubaneswar. In Bengaluru and Delhi, the wait is 36 and 35 years respectively. Chandigarh is the outlier—just 15 years of savings would buy the same-sized home, making it India’s most affordable capital by this measure.
These findings underscore a central concern voiced by financial analyst Akshat Shrivastava, who believes Indian property prices are unlikely to fall. “India has 1/4th the land of the US but 4X the population,” he said, calling it a “factor of 16” that continuously pressures supply. He notes the population will keep growing until at least 2065.
Despite economic shocks like the 2008 global crisis and 2016’s demonetization, Indian real estate has surged. “This should have killed the market,” Shrivastava said, “but property is up 200–300% since then.”
He attributes the resilience partly to developer strategies. “Developers are under no pressure to cut prices. In downturns, they just delay projects or offload to private equity,” he explained, calling this a deliberate pricing tactic.
As affordability plunges, especially in metros, even India’s richest urban households are priced out of ownership. The data paints a sobering picture: housing remains a luxury, not a given—even for those at the top.
Frequently Asked Questions
What is the average cost of a 1,184 sq ft home in Mumbai?
The average cost of a 1,184 sq ft home in Mumbai is over ₹3.5 crore, based on a per-square-foot rate of ₹29,911 in March 2025.
How long would the top 5% of earners in Mumbai need to save to buy an average-sized home?
The top 5% of earners in Mumbai would need to save for 109 years to afford an average-sized home.
What is the national average savings rate in India?
The national average savings rate in India is 30.2%.
Which Indian city is the most affordable for the top 5% of earners?
Chandigarh is the most affordable city for the top 5% of earners, with just 15 years of savings required to buy an average-sized home.
What are the key factors contributing to the high property prices in India?
Key factors contributing to high property prices in India include limited land availability, a growing population, and deliberate pricing strategies by developers.
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