Latest news with #NHB
Hindustan Times
14 hours ago
- Business
- Hindustan Times
109 years in Mumbai, 64 years in Gurugram: Can top earners still achieve homeownership in major cities?
In cities like Mumbai, Gurugram and Delhi, even the top earners face an uphill battle when it comes to homeownership. According to recent National Housing Board (NHB) data, the top 5% of income earners in Mumbai would need a staggering 109 years to afford a home, while in Gurugram, it's 64 years, Delhi, it's 35 years and Bengaluru, it's 36 years. These figures highlight the stark reality that homeownership is slipping out of reach, even for those in the highest income brackets. According to recent National Housing Board (NHB) data, the top 5% of income earners in Mumbai would need a staggering 109 years to afford a home, while in Gurugram, it's 64 years, Delhi, it's 35 years and Bengaluru, it's 36 years. (Representational Image)(Unsplash) But does this mean homeownership in these cities is impossible? Not necessarily. While the path to buying a home in major metros has become more complex, it isn't impossible. The key lies in creative financing, compromise on size or location, and a fundamental shift in how we think about property investment. 'The mathematical calculation behind this claim is both accurate and alarming,' says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor (RIA), and founder and chief investment advisor of SahajMoney, a financial planning firm. The top 5% of urban households in Maharashtra have a monthly per capita consumption expenditure (MPCE) of ₹ 22,352. For a family of four, this translates to a monthly income of ₹ 89,408 or approximately ₹ 10.7 lakh annually. Assuming India's gross savings rate of 30.2%, these wealthy families can save approximately ₹ 3.2 lakh per year. Compared to this, the average price per square foot in Mumbai is around ₹ 30,000, and for a standard home size of 1,184 square feet, the total home cost is ₹ 3.54 crore. So, he explains, the total years needed to afford a Rs. 3.5 crore house come out to be 109 years. While Mumbai is the most unaffordable metropolis in India, the situation in other cities like Gurugram and Bengaluru is also alarming. 'The affordability crisis extends across India's major metropolitan areas as affordable housing supply (homes under ₹ 1 crore) has declined dramatically across major cities. With no surprise, Mumbai maintains the highest EMI-to-income ratio at 48%, meaning households must allocate nearly half their monthly income to home loan payments. In contrast to this, Ahmedabad at 18% is most affordable,' says Kumar. The EMI-to-income ratio shows how much of your monthly income goes toward the loan EMI. For example, if you earn ₹ 1 lakh and pay ₹ 30,000 EMI, your ratio is 30%. Read More: Planning to buy a ₹ 2 crore home? A large down payment can ease your EMI burden and reduce financial stress Can you afford a house? Is it impossible to buy a house in a big city? 'Not impossible, but certainly harder than ever before. When even the top 5% of earners in a state like Maharashtra would need 109 years of savings to buy a modest home in Mumbai, it says a lot about how skewed the housing equation has become,' says Charu Pahuja, group director and COO, Wise Finserv (Private Wealth). For most people today, owning a home in a big city isn't off the table, but it comes with real trade-offs. It could mean taking on a 25-year loan, pooling incomes with a spouse or family, buying far from work and enduring long commutes, or postponing other life goals just to make the EMI fit. We recently looked at how you can afford a home worth ₹ 2 crore and how a large down payment can reduce your EMI burden. Like anything else you buy, you need to be able to afford your home. In fact, the bank will not lend you the money required to buy a home if your income does not support it. 'The right way to estimate affordability is to figure out how much funds are available for down-payment, stamp duty, registration, home furnishing, etc. and what is the loan affordability,' says Animesh Hardia, senior vice president, Quantitative Research at 1 Finance, a personal financial management and planning platform. The classic dream of buying a comfortable home in the heart of the city through years of disciplined saving is slowly giving way to a more complex reality. 'Now, buying a home often requires compromise, creativity, and a shift in mindset. It's still possible, but it's no longer simple,' says Pahuja. Read More: To rent or sell property? Here's what you should know to make the right decision The smart middle path between buying and renting In today's housing market, owning where it's affordable and renting where it's practical is becoming the smart middle path for many working professionals. Let's be real, buying a home in the heart of a big city often means years of debt or settling for something far from work, with exhausting commutes. On the flip side, Tier 2 cities offer better value, more space, and growing potential without the price tag that keeps you up at night. Owning a home, even in a different city, can still give you that sense of emotional security: 'I have something of my own.' And continuing to rent in the city you work in lets you stay close to your job, kids' school, and social life without being tied down by a crushing EMI. 'This hybrid model works best when you're financially stable enough to handle both rent and EMI, you see your Tier 2 home as a long-term investment, not a quick flip, and you're okay with living flexibly for a few more years,' says Pahuja. Your home in the Tier-2 city can also be put on rent, giving you an additional income. For many, this is a realistic way to build wealth without sacrificing everyday comfort. You're not giving up the dream of homeownership, you're just redefining how and where it fits into your life. Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
Dream home is hard to get: 109 yrs of savings needed to buy one in Mumbai
The real estate market is booming but homes in India's largest cities are becoming unaffordable, even for the wealthy, according to two major reports. In Mumbai and Gurugram, the top 5 per cent in income class have to save money for decades to buy a standard home, according to the 'Trend and Progress of Housing in India' report by the National Housing Bank (NHB) and the Household Consumption Expenditure Survey Factsheet' of the National Sample Survey Office (NSSO). NHB's Residential Property Price Index (RPPI) tracks the cost of a 110 square metre (1,184 square foot) house in various cities. NSSO's Household Consumption Expenditure Survey (HCES) 2022-23 provides income data for urban households, including the richest 5 per cent. Assuming a 30.7 per cent savings rate, as reported in 'India Gross Savings Rate', a report by CEIC Data, Business Standard calculated how long it takes to afford a home. Here's what the data shows for key cities: City House Price (in lakh) Annual Savings (in lakh) Years to Buy Mumbai 354 10.7 109 Gurugram 226 11.7 64 Bhubaneswar 120 2.3 53 Patna 81 6 45 Kolkata 97 8.2 39 Ahmedabad 94 8.1 38 Chennai 113 10.2 37 Bengaluru 115 10.4 36 Delhi 135 12.7 35 Lucknow 79 7.9 33 Dehradun 70 9.4 30 Ranchi 68 7.7 29 Guwahati 73 8.3 27 Thiruvananthapuram 87 10.9 26 Bhopal 57 7.2 26 Vizag 67 8.7 26 Raipur 50 6.5 25 Hyderabad 89 12.5 23 Ludhiana 55 7.9 23 Jaipur 45 9.3 16 Chandigarh 78 17.4 15 Mumbai is the least affordable city, requiring 109 years of savings for a Rs 3.54 crore home, even for those earning Rs 10.7 lakh annually. Gurugram follows, with a Rs 2.26 crore home requiring 64 years at Rs 11.7 lakh savings per year. Chandigarh is relatively affordable: a home costing Rs 78 lakh will take 15 years to buy if one has Rs 17.4 lakh in annual savings. Mumbai and Gurugram Housing demand in Mumbai outstrips supply. A 110 square metre home, which will be a modest 2BHK apartment, costs Rs 3.54 crore. Even the top 5 per cent, those with an estimated monthly per capita expenditure of Rs 22,352 (according to NSSO data), will struggle. Gurugram, a corporate hub near Delhi, is growing rapidly and the same-sized home costs Rs 2.26 crore. These cities highlight a broader trend: job-rich urban centers are pricing out even high earners. What does this mean for your finances? For middle class families, owning a home in Mumbai or Gurugram is difficult. Young professionals starting their careers face an even steeper climb. Planning to buy a home reshapes personal finance in several ways: Many may need to settle for smaller homes or live on rent for long. Loan dependence: Taking a home loan means high interest rates and long tenures increase financial strain. The NHB notes that housing loans reached Rs 33.53 trillion by September 2024, up 14 per cent year-on-year. More affordable cities like Chandigarh, Jaipur (16 years to repay a loan), or Hyderabad (23 years) may attract talent, but job opportunities often tie people to expensive hubs. This situation also affects long-term goals. Saving for a home can crowd out other priorities like retirement or education, forcing families to rethink their budgets. Broader implications The affordability gap isn't just a personal finance issue; it's a societal one. High prices in cities like Mumbai and Gurugram could slow urban economic growth, as workers struggle to settle. The NHB report highlights regional disparities in housing finance: southern states (35 per cent) and western states (30 per cent) dominate loan distribution, while north-eastern states get just 0.68 per cent. This uneven access worsens the crisis in high-cost areas. Government schemes like Pradhan Mantri Awas Yojana (PMAY) aim to boost affordable housing, but their impact in premium cities is limited. The NHB's RESIDEX index shows a 6.8 per cent price rise in Q3 2024, suggesting costs will keep climbing without major policy shifts. Looking ahead For individuals, navigating this crisis requires smart planning. Start saving early, even if it's a small amount. Explore suburbs or tier-2 cities where prices are lower. If loans are unavoidable, compare rates and opt for shorter tenures to minimize interest. Government subsidies under PMAY can help, especially for first-time buyers.
Mint
4 days ago
- Business
- Mint
Mumbai's elites need 109 years to buy home; in Gurgaon they require 64 years: Report
Even Maharashtra's highest-income households are finding homeownership in Mumbai increasingly out of reach. According to a recent analysis cited by the Times of India, even the top 5% of earners, those with average monthly household incomes of ₹ 10.7 lakh, would need to save for 109 years to purchase an average-sized home in India's financial capital. 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 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.
Time of India
4 days ago
- Business
- Time of India
Even top 5% can't buy a home in Mumbai: Study suggests over 100 years of saving still not enough for a 1,000 sqft house
Even for the top 5% of urban earners in Maharashtra, it would take over 100 years of saving to afford a home in Mumbai. In Haryana and Odisha, the wealthiest families would need more than 50 years to buy a house in their largest cities. In stark contrast, Chandigarh stands out as the most affordable state capital, reported ToI. In Maharashtra, the top 5% of urban households have a Monthly Per Capita Expenditure (MPCE) of ₹22,352. For a family of four, that translates to a monthly income of ₹89,408, or about ₹10.7 lakh annually. Assuming a savings rate of 30.2%, these families would save roughly ₹3.2 lakh a year. Meanwhile, data from the National Housing Bank (NHB) shows that as of March 2025, the average price per square foot for a home with a carpet area between 645 and 1,184 sq ft in Mumbai was ₹29,911. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo This means a typical 1,184 sq ft home would cost over ₹3.5 crore. At their current savings rate, the top 5% urban families in Maharashtra would need to save for 109 years to afford such a home. A similar calculation shows that for the top 5% urban families in Haryana, it would take 63 years to afford a house of similar size in Gurgaon. In Bhubaneswar, it would take more than 50 years of savings for Odisha's richest 5% urbanites to afford a house. Live Events Of the 21 state capitals for which carpet area price data was available from NHB, in 10 it would take more than 30 years of savings to buy a house. Chandigarh is the most affordable, as 15 years of savings will be enough to buy a 1,184 square feet house. Jaipur is the only other city where less than 20 years of savings would suffice. (with TOI Inputs)
Time of India
5 days ago
- Business
- Time of India
House in Mumbai: Richest 5% need 109 years' savings
Even for the top 5% of urban families by income in Maharashtra, buying a house in Mumbai would take more than 100 years of saving to fund. In Haryana and Odisha, it would take over 50 years of saving by the richest 5% to buy a house in their biggest cities. Tired of too many ads? go ad free now Chandigarh, by contrast, is the most affordable capital. These numbers have been arrived at by comparing the income of the top 5% households in a state/UT with average price of a 110sq m (1,184sq ft) house in its capital city - the middle of the three house size categories for which National Housing Board (NHB) compiles data. In 2022-23, India's gross savings to GDP ratio was 30.2%, and the same ratio has been applied to calculate savings of the richest 5% households. The income of the top 5% of urban families is derived from the average Monthly Per Capita Consumption Expenditure (MPCE) of the top 5% of urban folks in a state. The rural MPCE is considerably lower. In Maharashtra, for instance, the urban MPCE for the top 5% is Rs 22,352 per person per month. For a family of four, the income would be Rs 89,408 per month or Rs 10.7 lakh per annum. Applying the 30.2% saving rate to Maharashtra's top 5% families, their annual savings would be around Rs 3.2 lakh. NHB's data on house prices shows that the per square foot price for a house with a carpet area between 645 sq feet and 1,184 sq feet was Rs 29,911 in March 2025. This means a 1,184 square feet house on average cost over Rs 3.5 crore in Mumbai. With a saving of Rs 3.2 lakh per annum, the top 5% urban families of Maharashtra would have to save for 109 years to afford this house. NHB's average carpet area price is based on the registration data collected from sub-registrar offices (SROs) as well as the valuation data collected from primary lending institutions. Tired of too many ads? go ad free now A similar calculation shows that for the top 5% urban families in Haryana, it would take 63 years to afford a house of similar size in Gurgaon. In Bhubaneswar, it would take more than 50 years of savings for Odisha's richest 5% urbanites to afford a house. Of the 21 state capitals for which carpet area price data was available from NHB, in 10 it would take more than 30 years of savings to buy a house. Chandigarh is the most affordable, as 15 years of savings will be enough to buy a 1,184 square feet house. Jaipur is the only other city where less than 20 years of savings would suffice.
