Mumbai’s Top Earners Need 109 Years to Buy a Home; Gurgaon Requires 64 Years: Report
Even the highest-income households in Mumbai are finding homeownership increasingly out of reach, with the top 5% of earners needing 109 years to save for an average-sized home. This trend highlights the urgent need for reassessment of property prices across India's top cities.
Real EstateProperty PricesMumbaiGurgaonAffordabilityReal Estate MumbaiJun 24, 2025
The study combines data from the National Housing Board (NHB) with urban income estimates to calculate affordability across 21 state capitals. For Mumbai, with an average per-square-foot rate of ₹29,911 as of March 2025, a standard 1,184 sq. ft. home is priced at around ₹3.54 crore. With the top 5% households in the state saving approximately ₹3.2 lakh annually (assuming a national average savings rate of 30.2%), the affordability gap becomes starkly visible.
Gurgaon follows as the second least affordable city, with a saving horizon of 64 years for the same income bracket. Bengaluru and Delhi fare marginally better, requiring 36 and 35 years of savings, respectively. Chandigarh emerges as the most affordable among state capitals, where high-income households can buy a similar home after 15 years of saving.
The data has reignited debate online, with many users expressing disbelief at the extended timelines, while others called it a wake-up call to reassess urban housing policy and infrastructure distribution.
The findings come on the heels of an ANAROCK report last November, which showed a 23% year-on-year rise in average property prices across India’s top seven cities, including Mumbai and Delhi. During the April–September 2024 period, the average home price touched ₹1.23 crore. The NCR led the surge with a 56% jump in prices, averaging over ₹1.45 crore, followed by Bengaluru (44%) and Hyderabad (37%). Mumbai Metropolitan Region (MMR) recorded the highest sales volume, with Pune and NCR close behind.
Adding to the momentum is a growing appetite from wealthy Indians living abroad. According to a Bloomberg report, overseas Indians are expected to account for nearly 20% of all luxury home purchases in India by 2025, a trend further amplified by platforms like NoBroker.com.
As affordability continues to erode even for high-income earners, the widening gap underscores the structural issues in India’s urban real estate markets, especially in megacities like Mumbai, where land scarcity, regulatory challenges, and speculative investments keep homeownership out of reach for most.
Frequently Asked Questions
Why is homeownership in Mumbai so unaffordable for high-income earners?
Homeownership in Mumbai is unaffordable for high-income earners due to the high property prices and the average per-square-foot rate. Even with a significant monthly income, the cost of a standard home is so high that it would take the top 5% of earners 109 years to save enough.
Which city follows Mumbai in terms of unaffordability?
Gurgaon follows Mumbai as the second least affordable city, with high-income earners needing 64 years to save for an average-sized home.
What factors are contributing to the rise in property prices in India's top cities?
Several factors contribute to the rise in property prices in India's top cities, including land scarcity, regulatory challenges, speculative investments, and a growing demand from wealthy Indians living abroad.
How do other cities like Bengaluru and Delhi compare in terms of affordability?
Bengaluru and Delhi are marginally better in terms of affordability, requiring 36 and 35 years of savings, respectively, for high-income households to purchase an average-sized home.
What is the most affordable state capital mentioned in the report?
Chandigarh is the most affordable state capital mentioned in the report, where high-income households can buy a similar home after 15 years of saving.
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