Mumbai’s high cost of living is a well-known reality for locals, and recent data further reinforces this fact. A recent report by Knight Frank India, a leading property consultancy, has substantiated Mumbai’s status as the most expensive city in the country. The Knight Frank Affordability Index evaluated cities on a scale from most to least expensive, with Ahmedabad emerging as the most budget-friendly city.
The report’s core metric gauges the percentage of a household’s income dedicated to monthly housing installment payments. Cities that demand over 50 percent of a household’s income for this purpose are considered unaffordable by the report’s criteria.
The findings divulge that in Mumbai, the average household allocates approximately 55 percent of its income to housing EMIs (Equated Monthly Installments). Consequently, Mumbai clinches the unenviable title of India’s priciest city to inhabit. Trailing behind Mumbai, Hyderabad takes the second spot, necessitating households to commit around 31 percent of their earnings towards EMIs. Although more reasonable than Mumbai, Hyderabad’s living costs are still notably high.
The national capital, Delhi, ranks third on the list. Residents of Delhi might find themselves allocating 30 percent of their income to housing expenses. Sharing the subsequent rank are Bengaluru in Karnataka and Chennai in Tamil Nadu. These cities are relatively affordable, demanding approximately 28 percent of residents’ income for EMIs.
Moving on to Maharashtra’s Pune, housing installments might consume about 26 percent of one’s income. Notably, Ahmedabad in Gujarat emerges as the most economical city in the nation, with housing costs requiring only 23 percent of residents’ earnings.
In summary, the hierarchy of expensive cities based on EMI affordability is as follows:
Mumbai, Maharashtra
Hyderabad, Telangana
Delhi-NCR
Bengaluru, Karnataka & Chennai, Tamil Nadu
Pune, Maharashtra
Ahmedabad, Gujarat