Mumbai, India’s financial powerhouse, now grapples with one of the nation’s highest real estate costs, making even basic housing increasingly inaccessible for the working class. While some newly built luxury properties in south Mumbai are priced as high as Rs 1.5 lakh per square foot, even the most affordable projects barely meet the needs of the average Mumbaikar. For instance, small slum rehabilitation units in areas like Worli and Mahalaxmi cost upwards of Rs 50 lakh for a mere 300 square feet, stretching affordability for low-income residents. Amid this surge, the average flat price in Greater Mumbai stands at Rs 3.4 crore, leaving many to contend with cramped conditions or to live far from the city centre.
Despite a record 52,551 units sold and 49,181 new launches in Greater Mumbai as of September 2024, the city’s housing demand remains unmet. Experts say the average flat size in Greater Mumbai is around 832 square feet, with properties ranging from compact 1RK units of 150 square feet to luxurious 32,000-square-foot penthouses. The price of entry into this market remains steep, with the most affordable 1RK units priced at Rs 32 lakh in Malad (West) and Bhandup (West) and modest 1BHK units starting from Rs 48 lakh. With approval costs in Mumbai as high as 50 times those in cities like Hyderabad, the prospect of launching affordable housing projects remains bleak, worsening the crisis.
Experts highlight a notable shift in living conditions, as exorbitant prices have forced many working-class families into overcrowded chawls or to the outskirts, where affordable options are still available. Here, one-room dwellings are shared among multiple occupants, impacting their health and well-being. This reality starkly contrasts with the relatively lower costs in areas such as Bhandup, Dahisar, Vikhroli, Borivli, and Kandivli, where prices range between Rs 15,500 and Rs 22,500 per square foot. These areas saw significant price hikes of up to 39% since 2019, led by consistent demand and new developments, particularly for 2BHK configurations.
Sustainability experts warn that Mumbai’s housing crisis could have a lasting impact on its urban development and sustainability efforts. As more people relocate to the city’s outskirts, daily commutes increase, adding to pollution and straining public transport. If unaddressed, Mumbai’s housing challenges may deepen social divides, pushing low-income families further from economic opportunities. Urban planners advocate for balanced, affordable development to ensure sustainable growth and improve quality of life for Mumbai’s residents.
