High Rent Prices in Mumbai Causing 'Brain Drain': A Closer Look
Renting a 1 BHK in Mumbai costs ₹5.18 lakh annually, surpassing the average salary of junior employees. High rental prices are pushing professionals to move to more affordable cities, leading to a 'brain drain'.
MumbaiReal EstateBrain DrainRental PricesCredaimchiReal Estate MumbaiOct 18, 2024
The report further reveals that in cities like Bengaluru and Delhi-NCR, the annual rent for a 1 BHK flat is nearly half of that in Mumbai, at ₹2.32 lakh and ₹2.29 lakh, respectively. These cities also offer higher average annual salaries, with Bengaluru at ₹5.27 lakh and Delhi at ₹4.29 lakh.
The real estate developers' body points out that the negative disposable income in Mumbai makes it challenging for residents to cover basic living expenses. Negative disposable income occurs when, after paying for essential expenses like rent, food, and bills, a person either has no money left or even falls short.
For mid-level employees in Mumbai, who earn about ₹15.07 lakh annually, the report shows they spend almost half their salary on rent for a 2 BHK apartment, costing ₹7.5 lakh per year. In comparison, mid-level employees in Bengaluru and Delhi-NCR spend significantly less on rent. In Bengaluru, they earn ₹16.45 lakh and spend ₹3.90 lakh annually on rent, while in Delhi, they earn ₹14.07 lakh and spend ₹3.55 lakh on rent.
Senior-level employees in Mumbai, earning around ₹33.95 lakh annually, spend ₹14.05 lakh on rent for a 3 BHK flat. In contrast, senior professionals in Bengaluru and Delhi-NCR pay much less, spending ₹6.25 lakh and ₹5.78 lakh, respectively, for similar accommodation. Many senior professionals are leaving Mumbai in search of a better lifestyle and more savings.
CREDAI-MCHI, the real estate developers' body, emphasizes the need for policymakers to address the issue of high rental prices to retain talent and maintain the city's economic vibrancy. The 'brain drain' could have long-term implications for Mumbai's status as a major financial and commercial hub.
Frequently Asked Questions
What is the average annual rent for a 1 BHK flat in Mumbai?
The average annual rent for a 1 BHK flat in Mumbai is around ₹5.18 lakh.
How does the cost of renting a 1 BHK flat in Mumbai compare to other major cities in India?
In cities like Bengaluru and Delhi-NCR, the annual rent for a 1 BHK flat is nearly half of Mumbai’s cost, at ₹2.32 lakh and ₹2.29 lakh, respectively.
What is the average annual salary for junior-level employees in Mumbai?
The average annual salary for junior-level employees in Mumbai is ₹4.49 lakh.
What is the impact of high rental prices on mid-level employees in Mumbai?
Mid-level employees in Mumbai, who earn about ₹15.07 lakh annually, spend almost half their salary on rent for a 2 BHK apartment, costing ₹7.5 lakh per year.
How does the cost of living in Mumbai affect senior professionals?
Senior-level employees in Mumbai, earning around ₹33.95 lakh annually, spend ₹14.05 lakh on rent for a 3 BHK flat, leading many to move to more affordable cities.
Related News Articles
Soaring Prices of Under-Construction Properties in India's Big Cities: What's Driving the Boom?
Premium residential under-construction properties in Delhi, Noida, Gurugram, Bengaluru, and Mumbai have seen a significant surge in prices, driven by growing demand and evolving lifestyle preferences.
Pune's Luxury Real Estate Market Soars with Record-Breaking Penthouse Sale
Lodha One Bund Garden's Emperor Palace penthouse sells for INR 37cr, setting a new benchmark for luxury living in Pune.
Maharashtra MLC Election Results: Mahayuti Alliance Sweeps 9 Seats
The counting of votes for the Biennial election to 11 council seats in Maharashtra has concluded, with the ruling Mahayuti alliance winning all 9 seats they contested.
PMAY-U 2.0: Union Cabinet Approves ₹2.30 Lakh Crore Housing Assistance for Urban Poor and Middle-Class Families
MIG households are families with an annual income from ₹6 lakh up to ₹9 lakh. The government will provide assistance of ₹2.30 lakh crore under the scheme to construct, purchase, or rent a house at an affordable cost in urban areas.
Real Estate Sector Shows Resilience: Festive Demand and Office Leasing Boom
The finance ministry’s economic review highlights the real estate sector’s resilience, with a notable surge in demand during the festive season and a robust office leasing market.
hBits Secures Rs 40 Crore to Fuel Growth in Fractional Real Estate Investments
hBits, a platform for fractional ownership of commercial real estate, has secured Rs 40 crore in Series A funding. This investment will be used to enhance their AI-driven platform and expand their reach, making high-quality real estate accessible to a bro