Mumbai remains unaffordable as 29% of homes tagged over Rs 1 cr

A Knight Frank report says that Mumbai remains the most unaffordable market with 29 per cent of the city's total under construction units surpassing the Rs 10 mn (1 crore) mark as compared to 11 per cent and 5 per cent for the NCR and Bengaluru markets respectively. Cities like Mumbai and Chennai, which are land locked from one side by the sea, have the highest weighted average price of Rs 5,900/sq ft and Rs 4,500/ sq ft respectively.

The unique topography of these two cities has ensured restricted supply of land resulting in high prices for residential properties here. While the weighted average price in Mumbai city is much higher at Rs 14,400/sq.ft., it goes down to Rs 5,900/sq.ft. for the entire Mumbai Metropolitan Region which also includes areas such as Thane, Navi Mumbai, Mira- Bhayandar and Vasai-Virar.

Cities such as Bengaluru, Pune and Hyderabad have a relatively lower weighted average price of Rs 3,660/sq.ft., Rs 4,100/ sq.ft. and Rs 3,450/sq.ft. respectively. Emergence of the peripheral markets in these cities on the back of large scale development of the IT/ITeS employment hubs has ensured lower weighted average price here. Prices in the NCR are relatively higher at Rs 4,750/sq.ft. inspite of the availability of vast tracts of land in its periphery.

This is primarily because of the relatively higher prices prevalent in Gurgaon which still accounts for a majority of the new launches within the NCR. Hence, despite low prices prevailing in other peripheral locations such as Noida, Greater Noida, Ghaziabad and Faridabad, prices in Gurgaon are skewing the weighted average price of the NCR upwards.