Searching for Affordable Homes in Mumbai's Sky-High Real Estate Market
Mumbai's real estate market is notorious for its soaring property prices, making it exceedingly difficult for the working class to find affordable homes. Despite the challenges, some areas offer relatively cheaper options, though they come with their own
Mumbai Real EstateAffordable HomesProperty PricesReal Estate MarketResidential PricesReal Estate MumbaiOct 27, 2024
According to Liases Foras, a leading real estate research firm, Greater Mumbai witnessed a total of 52,551 units sold and 49,181 new launches in the 12 months leading up to September 2024. Currently, there are 102,018 unsold units in the city, with approximately 23 months of inventory. The average flat size is 832 square feet, although sizes range from around 150 square feet for 1RK units to approximately 32,000 square feet for luxury penthouses and duplexes.
The minimum carpet rate starts at Rs 13,452 per square foot, offered in a Malad (West) project, while the average price in the city is Rs 31,250 per square foot. The highest carpet rate is quoted at Rs 1,75,000 per square foot in a Malabar Hill project. The lowest price for a property in the city begins at Rs 32 lakhs for 1RK units, while ultra-luxury apartments can reach up to Rs 369 crore. On average, a flat costs about Rs 3.4 crore in Greater Mumbai, according to Liases Foras.
The most affordable project in Greater Mumbai is a Bhandup (West) project, offering 1RK units with carpet sizes ranging from 154 to 177 square feet, starting at a base cost of Rs 32 lakh. For those seeking more spacious options, 1BHK units are available at a minimum cost of Rs 48 lakh, while 2BHK units start at Rs 71 lakh in an affordable project developed by the Maharashtra Police Cooperative Housing Federation.
Housing experts say the high cost of living in Mumbai, coupled with astronomical property prices, has compelled many people to reside in cramped and overcrowded conditions such as chawls—small, one-room dwellings that house a significant portion of the working-class population. These living conditions often lack basic amenities and can be detrimental to the health and well-being of the residents. In Powai, a group of three migrants from North India rented a chawl room paying around Rs 6,000 a month. The demand for affordable homes continues to outstrip the supply, exacerbated by the scarcity of available land and the high cost of construction materials.
As a result, many working-class individuals and families are forced to live on the city's outskirts, enduring lengthy commutes to their workplaces. This not only adds to their daily expenses but also takes a toll on their quality of life. The situation has led to a growing disparity between the affluent and the impoverished in Mumbai, with the latter struggling to make ends meet in an increasingly expensive city.
Prominent areas in Greater Mumbai where one can buy a property relatively cheaper than other regions include Dahisar, Vikhroli, Bhandup, Borivli, and Kandivli. Average prices in these localities currently range from Rs 15,500 to Rs 22,500 per square foot. Since 2019, there has been up to a 39% jump in average residential prices in these areas, with Dahisar and Bhandup seeing the highest 39% jump each.
According to Anarock Research, 2BHKs are the most prominent size configurations in demand by buyers in these areas. Following this demand, 2BHKs have the largest share among the total new supply in these micro-markets. Demand remains significantly high in these areas, which is why developers have been launching several new projects since 2019. These five localities collectively saw a total new supply of approximately 56,150 new units between 2019 and late 2024, with Kandivali seeing the highest new supply of approximately 16,000 units, followed by Borivali with 15,800 new units.
Real estate rates in Mumbai have changed dramatically. No longer can we generalize and peg a rate to an area. The variation is as drastic as Bandra West, which sells at Rs 40,000 per square foot to Rs 1,50,000 per square foot. Affordable areas in such locations are always closer to the station between S V Road and the station, where rates have traditionally been 20% lower. These areas were developed around the time the stations were built, hence the buildings are older, and the markets are congested.
A few decades ago, middle-class families could stretch their budgets and buy a home in Mumbai. Until the early 1970s, a middle-level employee working in a cotton textile mill could afford to buy a studio apartment at Bandra Bandstand. Today, it would be inconceivable.
Frequently Asked Questions
What is the average property price per square foot in Greater Mumbai?
The average property price per square foot in Greater Mumbai is Rs 31,250.
Which are the most affordable localities in Greater Mumbai?
The most affordable localities in Greater Mumbai include Dahisar, Vikhroli, Bhandup, Borivli, and Kandivli.
What is the lowest price for a property in Greater Mumbai?
The lowest price for a property in Greater Mumbai starts at Rs 32 lakhs for 1RK units.
How has the demand for affordable homes in Mumbai changed over the years?
The demand for affordable homes in Mumbai has significantly increased, but it continues to outstrip the supply, leading to a growing disparity between the affluent and the impoverished.
What are the challenges faced by working-class individuals in Mumbai's real estate market?
Working-class individuals in Mumbai's real estate market face challenges such as high property prices, scarcity of available land, and the need to live in cramped and overcrowded conditions like chawls.
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