Mumbai tops among the Expensive Cities for Accomdatation in India

Mumbai ranks among the expensive cities in India for the accommodation rentals. The average annual rental costs for housing in Mumbai can put anyone back by Rs.5.18 lakh for only a 1 BHK apartment. This stretches to the average annual salary of junior level employees whose annual income estimate around Rs.4.49 lakh as per the reports by CREDAI-MCH, which is an apex body of real-estate developers.

The report also states that Mumbai's soaring rental costs may lead to a 'brain drain' as professionals may be forced to seek financial stability in affordable cities. In comparison, the average annual rental costs in Bengaluru and Delhi-NCR for a 1 BHK apartment is almost half – Rs.2.32 lakh and Rs.2.29 lakh respectively.

The average annual salary for employees in Bengaluru and Delhi is Rs.5.27 lakh and Rs.4.29 lakh respectively; the report said adding that the negative disposable income impacts peoples’ ability to cover basic living expenses and other financial obligations in Mumbai.

According to the report, mid-level employees, who usually take up a 2 BHK apartment on rent, earn an average salary of Rs.15.07 lakh annually and end up spending Rs.7.5 lakh per annum on average towards rent in Mumbai.

According to a report, in Bengaluru, on the other hand, mid-level employees residing in a 2 BHK earning an annual salary of Rs.16.45 lakh end up spending Rs.3.90 lakh annually on rent. In Delhi-NCR, the average salary for a mid-level professional is Rs.14.07 lakh and the average annual.

As per the report says, “On an average, a developer in Mumbai pays Rs.54,221 as approval cost in the form of premiums to develop 1 square meter. In Delhi NCR, the cost is only Rs.2, 166, in Chennai, Bengaluru and Hyderabad it is in the range of Rs.1, 071 to Rs.5, 466.

Last week, Niranjan Hiranandani says that ‘’Developers had gone on record on social media to say that homebuyers pay almost 50% of the amount towards taxes’’.

He further added that, “if you buy a house from me, in Mumbai, 50% of the money goes to the government directly or indirectly. Whether it is GST stamp duty, FSI rate. I cannot give you an affordable house, the ready reckoner rate is so high that I cannot sell below the ready reckoner rate".