Real Estate Alert: Mumbai's Soaring Rents Drive Talent to Affordable Cities

Real Estate Alert: Mumbai's Soaring Rents Drive Talent to Affordable Cities

Real Estate Alert: Mumbai's Soaring Rents Drive Talent to Affordable Cities

Mumbai’s escalating rental costs are pushing professionals to consider relocating to more affordable cities like Bengaluru and Delhi NCR. Mumbai ranks as one of India’s most expensive cities for housing, with an average annual rental cost of ₹5.18 lakh for a 1BHK apartment. This amount exceeds the average salary of junior-level employees, which is around ₹4.49 lakh, as reported by CREDAI-MCHI, a leading real estate developers' organization. This financial strain is driving professionals to seek better opportunities in cities where living costs are lower.

In Bengaluru and Delhi NCR, for instance, the annual rent for a 1BHK apartment is about ₹2.32 lakh and ₹2.29 lakh, respectively—nearly half of what it costs in Mumbai. Employees in these cities also earn comparable or slightly higher salaries, which allows them to cover basic expenses and have more disposable income. The migration trend is increasingly visible among mid and senior-level professionals who spend a large portion of their income on rent in Mumbai, affecting their financial stability and lifestyle.

For mid-level employees, the pressure is immense, with many paying nearly ₹7.5 lakh annually for a 2BHK apartment in Mumbai. This leaves them with little for savings or discretionary spending. In contrast, mid-level professionals in Bengaluru or Delhi spend significantly less on rent, freeing up their income for other needs. The situation is even tougher for senior-level employees, who pay an average of ₹14.05 lakh for a 3BHK in Mumbai, compared to much lower rental costs in Bengaluru or Delhi.

As a result, Mumbai is witnessing a gradual exodus of professionals, which could lead to a talent shortage and hamper the city's economic growth. High living expenses, along with rising rental costs, are making the city less attractive for professionals seeking financial security.

 

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