Mumbai’s housing affordability problem is proving costly for its developers
A home in Maximum City is considered ‘affordable’ if priced around Rs 1.5 crore, or around $200k. Problem for the developers is that not too many people exist who can afford that sum.
Mumbai had only 1,96,085 housing rental registrations last year — shockingly low for a city with a population in excess of 1.24 crore residents.
Why is that? More than 41 percent of the residents stay in slums. Of the rest, 16,000 buildings in the city are cessed, leaving the majority out of the rental registration orbit. And most of the ones that do the registration of rental agreements have two-year leases with their landlords due to which they get captured only in the year of registration while they are staying longer.