Mumbai's Top Earners Need 109 Years to Buy a Home: The Sobering Reality of Housing Affordability
A recent analysis reveals that even the wealthiest 5 percent of households in Mumbai would need to save for 109 years to afford an average-sized home, highlighting the severe housing affordability crisis in India's financial capital.
MumbaiHousing AffordabilityReal EstateLuxury HomesUrban IncomeReal Estate MumbaiJun 24, 2025
This comprehensive analysis, derived from National Housing Board (NHB) data combined with urban income estimates and featured in a recent Times of India report, highlights the immense affordability gap. The report compares the cost of a standard 1,184 square foot home against the annual savings of the top 5 percent earning households in each state. In Maharashtra, this elite group commands an average annual household income of approximately Rs 10.7 lakh. Assuming a national average savings rate of 30.2 percent, these families can realistically put aside about Rs 3.2 lakh per year. However, with the average cost of a similar home in Mumbai hovering at over Rs 3.5 crore, based on a March 2025 per-square-foot rate of Rs 29,911, the decades-long saving period becomes clear.
The challenge of affordability is not unique to Mumbai but is similarly pronounced in other major Indian cities. In Gurgaon, Haryana's largest urban center, the top 5 percent of earners would still require 64 years of savings to purchase the same property. Bengaluru, the IT hub, presents a slightly more achievable, though still substantial, 36-year wait, while Delhi demands 35 years of dedicated saving. Chandigarh stands out as a stark contrast, emerging as India's most affordable capital by this metric, where just 15 years of savings would suffice for the same property.
The report left online commentators in disbelief. While a section of them refuted the findings of the NHB report, others claimed it was time to move out of the expensive cities. 'Top 5 percent households in Mumbai are already at 15–20 LPA (threshold), real averages are much higher. Gurugram figures also seem way off. Kinda looks like a misleading report,' commented Jay (@its_allrightt). 'Wild how even the top earners can't catch up with Mumbai's insane housing costs... this market's broken for everyone. Brutal reality check,' wrote Carla Potter (@CPotter36259).
Another user, Roasted and Posted (@AlkaJacob1) said, 'It's time for people to start migrating from Mumbai for better living conditions & they will definitely find it. They need to overcome the initial fears. That's it.'
Buying homes in major Indian cities has become costlier as rising demand for luxury units has boosted overall property prices, ANAROCK had shared last November. In its report, the Mumbai-based real estate consultancy firm said that the average house price in top seven cities, including New Delhi and Mumbai, climbed 23 percent from a year earlier to Rs 1.23 crore during April-September.
As per a 2024 Bloomberg report, it is the wealthy Indians living abroad who are lapping up luxury homes in the country. They are expected to make up almost a fifth of all home sales by 2025, property platform NoBroker.com stated. Amid this, Mumbai Metropolitan Area witnessed the largest sales volume, followed by Pune, and the NCR, ANAROCK said. The NCR saw the highest jump in average property price, advancing 56 percent to more than Rs 1.45 crore, it said. Bengaluru came in second with 44 percent, followed by Hyderabad with 37 percent.
Frequently Asked Questions
How long does it take for the top 5 percent of earners in Mumbai to save for a home?
The top 5 percent of earners in Mumbai, with a household income of Rs 10.7 lakh a month, would need to save for 109 years to afford an average-sized home in the city.
What is the average cost of a 1,184 square foot home in Mumbai?
The average cost of a 1,184 square foot home in Mumbai is over Rs 3.5 crore, based on a March 2025 per-square-foot rate of Rs 29,911.
Which Indian city is the most affordable for homeownership?
Chandigarh is the most affordable capital in India for homeownership, where the top 5 percent of earners would need to save for just 15 years to afford an average-sized home.
How has the average house price in top Indian cities changed in recent years?
The average house price in top seven cities, including New Delhi and Mumbai, climbed 23 percent from a year earlier to Rs 1.23 crore during April-September, according to ANAROCK.
Who is driving the demand for luxury homes in India?
Wealthy Indians living abroad are driving the demand for luxury homes in India, expected to make up almost a fifth of all home sales by 2025, according to a 2024 Bloomberg report.
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