Mumbai Real Estate: A 109-Year Dream for the Wealthiest
In Mumbai, even the top 5% of earners face a 109-year wait to afford an average-sized home, making it the least affordable real estate market among 21 Indian capitals.
Mumbai Real EstateHousing AffordabilityTop EarnersProperty PricesIndian Real EstateReal Estate MumbaiJun 24, 2025
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
Why is Mumbai's real estate market so unaffordable?
Mumbai's real estate market is unaffordable due to the high cost of living, limited land availability, and a high population density. The top 5% of earners would need to save for 109 years to afford an average-sized home.
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 do other major Indian cities compare in terms of housing affordability?
In Gurgaon, the top 5% of earners would need to save for 64 years. It’s over 50 years in Bhubaneswar, 36 years in Bengaluru, and 35 years in Delhi. Chandigarh is the most affordable, with a 15-year wait.
What factors contribute to the high property prices in India?
High property prices in India are driven by limited land availability, a growing population, and resilient developer strategies that do not pressure them to cut prices during economic downturns.
How has the Indian real estate market performed despite economic shocks?
Despite economic shocks like the 2008 global crisis and 2016’s demonetization, Indian real estate has surged, with property values increasing by 200–300% since these events.
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