Mumbai World's Least Affordable City for Locals
Home News Viewpoint
Travel Entertainment Auto Gadgets & Electronics Sports Lifestyle Food
Rankings Whitepapers Blogs Conferences About Us

Mumbai World's Least Affordable City for Locals

By siliconindia   |   Monday, April 16, 2012   |    1 Comments

Bangalore: According to an analysis of real estate and wages, "The average Indian would need to work for three centuries to pay for a luxury home in Mumbai, making that city the least affordable in the world for locals" reports Bloomberg.

table1
According to the chart, in Mumbai, the price of 100 square meter luxury residence is nearly $1.14 million, which is 308 times more than India's average annual income; this calculation based on housing index comprising 63 markets by Knight Frank LLP and income estimates of the U.S Central Intelligence Agency for purchasing-power parity in 2011. As per the data, buyers in Shanghai need 233 times more than Chain's per-capita income and Moscow buyers need 122 times the average Russian income. And in Singapore and New York, home buyers need 43 years and 48 years, respectively.

According to Bloomberg's data, at the time when the per-capita purchasing power of an average Indian was $ 3700 a square meter, the home prices in Mumbai's prime location stood at around $ 11,400 square meter in the 4th quarter of 2011. This data clearly shows that the purchasing power of common people by far very less compared to the current luxury home rates.

"There are big differences in wealth levels in emerging markets compared to the developed world, which is part of the course for economic development," says London-based head of residential research at Knight Frank, Liam Bailey, in an e-mailed response. He also stated that "In the first phase of growth some people make big fortunes, it takes time for this to trickle down as the middle class develop and generate their own wealth," reports Bloomberg.

Follow SiliconIndia :