Mumbai's Housing Costs Now Rival Dubai's; Top Earners Need 109 Years to Save
Mumbai's real estate prices have surged to match those in Dubai, with the highest 5% of earners needing 109 years of savings to afford a home, according to recent reports.
MumbaiReal EstateHousing PricesSavingsAffordabilityReal Estate PuneJun 24, 2025
The National Housing Board (NHB) reveals that even the top 5% of families in Maharashtra must save for a century to buy a home in Mumbai, which currently has the most expensive real estate in India, averaging Rs 26,975 per square foot. This cost competes with Dubai's real estate, where land was valued at Rs 27,884 per square foot the previous year.
The monthly per capita income for the highest 5% of urban households in Maharashtra is Rs 22,352, which equates to an annual income of Rs 10.7 lakh for a family of four. With a saving rate of 30.2%, these households set aside around Rs 3.2 lakh annually. Data from NHB indicates that by March 2025, properties with carpet areas ranging from 645 sq ft to 1,184 sq ft are priced at Rs 29,911 per square foot, according to a report by TOI.
As a result, a 1,184 sq ft residence in Mumbai is priced at more than Rs 3.5 crore, compelling the wealthiest 5% of families to save for 109 years to afford it. In Haryana and Gurugram, the richest 5% would require more than 50 years of savings for comparable housing. Chandigarh is the least expensive city, requiring approximately 15 years of saving to purchase a home.
In Maharashtra, the top 5% of urban families encounter a significant obstacle, requiring over a hundred years to accumulate enough savings for housing in Mumbai. Cities such as Gurgaon and Bhubaneswar also follow suit, with saving times surpassing 50 years. Out of 21 state capitals, 10 need more than 30 years of savings, while Chandigarh and Jaipur take considerably less time, at 15 and under 20 years, respectively, to purchase comparable properties.
Frequently Asked Questions
How long do the top 5% of earners in Mumbai need to save to buy a home?
The top 5% of earners in Mumbai need to save for 109 years to afford a home, setting aside 30% of their earnings.
What is the average cost per square foot of real estate in Mumbai?
The average cost per square foot of real estate in Mumbai is Rs 26,975.
How does Mumbai's real estate cost compare to Dubai's?
Mumbai's real estate costs are comparable to Dubai's, with land in Dubai valued at Rs 27,884 per square foot the previous year.
What is the annual income of the top 5% of urban households in Maharashtra?
The annual income of the top 5% of urban households in Maharashtra is Rs 10.7 lakh for a family of four.
Which city requires the least amount of time for the top 5% to save for a home?
Chandigarh requires the least amount of time, approximately 15 years, for the top 5% to save for a home.
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