Budget of ₹9.4 Crore Buys Smaller Homes in Mumbai Than in 2020: Wealth Report 2026
India, April 24 -- A budget of $1 million (approximately ₹9.4 crore) now buys less real estate in Mumbai compared to five years ago, underlining the city's worsening affordability, even for the ultra-rich.
That's not the case in India's two other metropolises, Delhi and Bengaluru, where the real estate area purchasable for $1 million has increased in this period, even if marginally. These are the findings of the Wealth Report 2026, released by international property consultant Knight Frank on Thursday.
The report reveals that in Q4 2025, $1 million bought 96 sqm (1,033.33 sq ft) of real estate in Mumbai, down from 106 sqm (1,140.97 sq ft) in Q4 2020. This decrease in purchasing capability has been driven by limited land availability, increasing demand, and stringent regulatory measures.
Mumbai, known for its dense population and limited land, has seen a significant rise in property prices over the years. The city's prime locations, such as South Mumbai, Bandra, and Andheri, have become increasingly expensive, making it difficult for even the ultra-rich to find affordable options.
In contrast, Delhi and Bengaluru have seen a slight increase in the area purchasable for $1 million. In Delhi, the same budget can now buy 112 sqm (1,205.56 sq ft) of real estate, up from 109 sqm (1,173.41 sq ft) in 2020. Bengaluru has seen a more modest increase, with $1 million buying 105 sqm (1,130.21 sq ft) of real estate in 2025, compared to 103 sqm (1,108.96 sq ft) in 2020.
The disparity in real estate affordability between these cities can be attributed to various factors, including urban planning, infrastructure development, and economic growth. Mumbai's limited land availability and high demand have driven up property prices, making it one of the most expensive cities in the world.
Knight Frank's report also highlights the growing trend of luxury property buyers looking beyond traditional prime locations. Many are now exploring suburban areas and newer developments, which offer more affordable options without compromising on quality and amenities.
However, the challenge remains significant in Mumbai. The city's real estate market is highly competitive, and the lack of new land for development has led to a shortage of housing, particularly in the luxury segment. This has resulted in a situation where buyers are paying more for less, further exacerbating the affordability issue.
The report also points out that while the ultra-rich in Mumbai may be paying more for smaller spaces, the overall investment in real estate remains a lucrative option. The city's economic importance and the concentration of high-net-worth individuals continue to drive demand for luxury properties.
In conclusion, the Wealth Report 2026 underscores the critical need for policymakers to address the issue of real estate affordability in Mumbai. Measures to increase land availability, improve infrastructure, and promote affordable housing projects could help mitigate the challenges faced by both buyers and the real estate market as a whole.
