Mumbai, India’s financial hub, is grappling with a rental crisis that is impacting professionals across all levels. According to a report by CREDAI-MCHI, the cost of renting a 1 BHK in Mumbai averages ₹5.18 lakh annually—significantly higher than the ₹4.49 lakh annual salary earned by junior-level employees. This financial strain is driving professionals to consider more affordable alternatives like Bengaluru and Delhi-NCR.
Junior-Level Employees Struggle with Rent
For junior-level professionals, the disparity between income and rent is particularly alarming. With annual salaries averaging ₹4.49 lakh, paying ₹5.18 lakh for a 1 BHK in Mumbai is unsustainable. In contrast, comparable flats in Bengaluru and Delhi-NCR are far more affordable, costing ₹2.32 lakh and ₹2.29 lakh annually, respectively. This growing gap is pushing young talent out of Mumbai, leading to concerns of a ‘brain drain.’
Mid-Level Professionals Face Similar Financial Pressure
The situation isn’t much better for mid-level professionals. In Mumbai, those earning an average of ₹15.07 lakh per year are spending almost half their income—₹7.5 lakh—on rent for a 2 BHK apartment. By comparison, their counterparts in Bengaluru and Delhi-NCR enjoy significantly lower rental costs, paying around ₹3.90 lakh and ₹3.55 lakh, respectively, while earning similar salaries.
Senior Professionals Relocating for Financial Stability
Even senior professionals in Mumbai, earning an average of ₹33.95 lakh annually, are not spared from the high rental burden. They pay a steep ₹14.05 lakh for a 3 BHK, which is more than double the cost of similar accommodations in Bengaluru and Delhi-NCR. Many are relocating to these cities for better quality of life and financial stability.
Impact on Mumbai’s Competitiveness and Growth
This trend of professionals leaving Mumbai is affecting the city’s competitiveness. High rental costs are making it difficult for businesses to attract and retain talent, threatening growth across industries. Additionally, developers face immense pressure due to Mumbai’s high real estate premiums, further driving up housing costs.
Conclusion: A Looming Talent Drain
Unless rental costs are brought under control, Mumbai risks losing its professional talent and businesses to more affordable cities. The report suggests that without intervention, Mumbai’s expensive rental market will continue to drive professionals away, hindering the city’s future growth.
