Mumbai, the 'city of dreams' is where millions come to find their life and build their future. But sometimes this 'Dream' can turn into a bit of nightmare for many. One of the key elements that can make the city experience cumbersome is its housing system.

The Mumbai Problem

Buying a house in Mumbai is another 'Dream', but even when it comes to renting a place to live, the monthly departure of resources from one's bank account can be a hard pill to swallow.

This is what a report has highlighted yet again. According to a report from CREDAI-MCHI, the annual rent for living in a 1 BHK (Bedroom-Hall-Kitchen) apartment in the city of Mumbai costs an average of Rs 5.18 lakh. This would amount to Rs 43,166 a month.

While this is a mammoth sum, what makes it more stark is its comparison with the average income of individuals paying for the flat.

According to the same report, carried in a report by the Mint, the average annual salary of these Mumbaikars is around Rs 4.49 lakh, which would mean a monthly salary of around Rs 37,416. Thereby marking a deficit of Rs 5,750 every month and an annual deficit of Rs 69,000, which in itself, tantamounts to two months of salary.

The report points at the development of a dire situation, wherein individuals and families aspiring for better living conditions are looking to move away from the city.

Delhi, Bengaluru Are Affordable

This could lead to a new kind of brain drain, as brain drain is often understood to be that phenomenon that comes to pass in the absence of opportunities, with major cities and urban centres gaining from it while rural or deprived regions being at the receiving end.

This may lead to professionals moving to cities where the rent is more accommodating with dignified living conditions.  

According to the CREDAI-MCHI report, Mumbai's biggest 'rival city', Delhi-NCR, has an average annual rent of Rs 2.29 lakh for a 1 BHK flat, over 50 per cent lower than Mumbai. Even the city of Bengaluru, known for its relatively palatable weather, has an average annual rent of Rs 2.32 lakh for a 1 BHK.

It is also interesting to note that according to anecdotal accounts, in many cities the concept of a 1 BHK accommodation is a secondary option, as flats with more space with greater dimensions (2 BHK and Beyond) are the norm for housing, unlike Mumbai, wherein a 1 BHK is the standard.

The report also talks about mid-level and senior-level employees, who on average spend half of their annual income on rental purposes in Mumbai. In contrast, the aforementioned citizens in Bengaluru and Delhi spend much less.