109 years in Mumbai, 64 years in Gurugram: Can top earners still achieve homeownership in major cities? - Hindustan Times
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.
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%.
“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.
To rent or sell property? Here’s what you should know to make the right decision
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
