Mumbai ranked most expensive city to live in: Report

Mumbai known for its bustling streets diverse culture and economic vibrancy has earned a distinction as the most expensive city to live in as per the recently released Knight Frank Affordability Index for 2023 reported news agency ANI Ahmedabad is ranked as Indias most affordable city to live inThe issue of housing affordability has taken centre stage as cities strike a balance between economic growth and the wellbeing of their inhabitantsThe demand for a skilled workforce to power economic engines often clashes with the inadequate supply of quality housing leading to a surge in property prices that far outpaces income growthThe governments focus on affordable housing exemplified by the flagship Housing for All by 2022 program has played a pivotal role in reducing residential unit prices and increasing affordabilityTo better comprehend the global affordability crisis Knight Frank has pioneered the Global Affordability Monitor evaluating 32 cities worldwide based on three critical parametersMumbai finds itself positioned in the secondmost affordable bracket among these cities which ironically places it as the least affordable city in India making it the most expensive city to live inThe Knight Frank India Affordability Benchmark further corroborates Mumbais dire situation With average house prices standing at around seven times the average household income the financial burden of homeownership in Mumbai is the heaviest across all major Indian citiesIndia boasting one of the worlds fastestgrowing economies has witnessed remarkable urban expansion driven by employment and business prospectsThis growth has attracted a wave of individuals seeking upward mobility and a better quality of life Acquiring a home symbolizes stability achievement and social status making residential real estate a prized possessionThis fervour for property ownership has driven prices skyward However in the early 2010s the market dynamics shifted Spiralling prices coupled with larger apartment sizes led to demand contraction leaving developers with unsold inventoryRegulatory reforms such as the Real Estate Regulation and Development Act 2016 Real Estate Regulatory Authority RERA and the governments affordable housing initiatives played a pivotal role in revitalizing the marketMeasures like the Credit Linked Subsidy Scheme CLSS and infrastructure status for affordable housing projects have contributed to this shiftThe spectrum of affordability in Indias top eight cities is intriguing particularly when viewed from 2010 to 2018 While the average apartment in Mumbai now costs seven times the average household income its a notable improvement from 11 times in 2010Other cities such as Kolkata Ahmedabad and Pune stand out as exemplars of improved affordability with apartment prices at just three times the average household incomeThe Knight Frank Affordability Benchmark set at 45 times the average annual household income remains a goal for cities like Mumbai NCR and HyderabadAs the global housing landscape shifts toward affordability the Indian residential market is undergoing a transformation aligning with this global trendWith regulatory interventions and a renewed focus on affordable housing Indian cities are on a trajectory towards a more equitable housing landscape one where residents can achieve the dream of owning a home without shouldering an exorbitant financial burdenWith inputs from ANI