Earning Rs 2.5 Lakh a Month, But Buying a Home in Mumbai Remains Tough

If you’re earning Rs 2.5 lakh a month in Mumbai, you might expect to be well on your way to homeownership. But for many, even this high income isn’t enough to buy a modest flat in the city. Here’s why so many well-paid professionals still find themselves stuck renting or making huge sacrifices for a home.

 

Key Highlights:

 

Even with a monthly income of Rs 2.5 lakh, buying a basic 2BHK flat in a decent Mumbai neighborhood is out of reach for most. Typical prices for a 2BHK range from Rs 1.5 crore in the suburbs to over Rs 3 crore in more central areas. In prime spots, prices soar past Rs 5 crore.

 

Taking out a home loan for Rs 3 crore means EMIs of around Rs 1.5 lakh per month, eating up more than half your salary and leaving little for other expenses or savings.

 

Mumbai’s property prices are among the highest in the world, with a price-to-income ratio of 14.3. This means a home costs more than 14 years of an average household’s income, the highest in India.

 

The city’s real estate market is driven by limited land, high demand, and speculative practices. Developers often release only a few units at a time, pushing prices up further.

 

Government schemes for affordable housing rarely help the middle class, as price caps are far below Mumbai’s real-world rates.

 

Many professionals are left with two choices: rent indefinitely or move far from the city center, facing long commutes and fewer amenities.

 

The reality is that even those in the top 2% of income earners feel trapped, working for decades just to pay off a home, with little financial freedom or security.

 

Source: Business Standard