Buying a House in Mumbai? Top 5% of Rich Families Need 109 Years to Save Enough
A recent report reveals that even the top 5% of rich families in Mumbai would need to save for 109 years to buy an average-sized house. This highlights the extreme housing affordability crisis in the city.
MumbaiReal EstateHousing AffordabilityProperty PricesSavingsReal Estate MumbaiJun 25, 2025
According to a report by the Times of India, the top 5% urban families of Maharashtra will have to save for about 109 years to buy an average size (1,184 square feet) house in Mumbai. Not only this, the top rich families will be able to buy a house only after saving for 63 years in Gurugram, Haryana, and 50 years in Bhubaneswar, Odisha.
The report compared the price of an average-sized house (1,184 sq ft) in the state/union territory capital with the income of the top 5% people in the urban area of that state to find out how many years of savings it would take to buy a house. For example, the monthly per capita consumption (MPCE) of the top 5% urban households in Maharashtra is Rs 22,352. The total income of a family of four members is: Rs 89,408 per month or Rs 10.7 lakh annually.
Assuming India’s gross savings rate of 30.2%, the annual savings of this income group is estimated to be around Rs 3.2 lakh. At the same time, according to NHB data, the average house price in Mumbai in March 2025 was Rs 29,911 per sq ft. That is, a house of 1,184 sq ft will cost more than Rs 3.5 crore. Thus, a family saving Rs 3.2 lakh annually will take 109 years to buy this house.
Chandigarh turned out to be the most affordable capital city in the country, where a 1,184 sq ft house can be bought in just 15 years of savings. Jaipur is another city where the dream of buying a house can be fulfilled in less than 20 years. But in 10 of the 21 state capitals, more than 30 years of savings are required to buy a house.
Experts believe that residential house prices have risen rapidly due to a shortage of land in major cities, an ever-increasing population, rising investment trends, and uncontrolled real estate. In cities like Mumbai, paying rent is a challenge for common people – buying a house there is now becoming a matter of the super-rich. If you are planning to buy a home, it is important to understand that a practical plan can be made only after combining your income, savings capacity, and loan eligibility.
Frequently Asked Questions
How long does it take for the top 5% of urban families in Maharashtra to save for a house in Mumbai?
According to the report, it takes the top 5% of urban families in Maharashtra about 109 years to save enough to buy an average-sized house in Mumbai.
What is the average price of a 1,184 sq ft house in Mumbai?
The average price of a 1,184 sq ft house in Mumbai is more than Rs 3.5 crore, based on NHB data.
Which city is the most affordable for buying a house in India?
Chandigarh is the most affordable capital city in India, where a 1,184 sq ft house can be bought in just 15 years of savings.
What factors contribute to the high cost of housing in cities like Mumbai?
The high cost of housing in cities like Mumbai is attributed to a shortage of land, an increasing population, rising investment trends, and uncontrolled real estate development.
What is the average annual savings rate for the top 5% of urban households in Maharashtra?
The average annual savings rate for the top 5% of urban households in Maharashtra is estimated to be around Rs 3.2 lakh, assuming India’s gross savings rate of 30.2%.
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