Mumbai’s property costs are India’s highest. Prices reach 3 lakh rupees per square foot. Homeownership remains a distant goal for many. Even top earners face major hurdles. A housing bank study shows the richest 5% of city households need over 109 years. This is to save for an average home. This highlights a severe affordability problem.
Mumbai’s property market is at its most affordable in 15 years. Still, most buyers cannot afford a home. A Knight Frank India report confirms this. Households spend 48% of income on home loans. This is down from 50% last year. It is still much higher than other big cities.
Mumbai’s market is now below a 50% affordability mark. This was previously seen as the limit. Lower home loan rates helped. However, experts believe affordability is still lacking.
India defines affordable housing by size and price. Units up to 60 square meters in metros are affordable. They must cost under 45 lakh rupees. Non-metro units up to 90 square meters also qualify.
The real estate group CREDAI wants this price cap raised. They suggest 75 to 80 lakh rupees. CREDAI also wants a 1% GST. This would apply to homes between 75 and 80 lakh.
Shekhar Patel, CREDAI President, stated this in April 2025. He explained that affordable homes are still built. Their prices, however, exceed the current cap. Raising the cap will help buyers. They would pay less GST.
What can 45 lakh rupees buy in Mumbai? Mumbai’s real estate is the nation’s priciest. Buying a home there is many people’s dream. Apartments can cost 20,000 rupees per square foot.