Mumbai sees 3rd highest growth in annual household income

Mumbai: Mumbai has joined the list of a select few cities in the world where the annual household income has outpaced the growth in house prices between 2014 and 2018, making it one of the most affordable cities globally.

According to property consultancy firm Knight Frank, India’s commercial capital has recorded the third highest growth in annual household income after San Francisco and Moscow.

Mumbai saw a rise of 20.4 per cent in annual household income during the period when compared to 8 per cent growth in home prices.

The Knight Frank’s global report titled Urban Futures, which evaluated 32 cities across the world to understand the difference between house prices and income, said that Mumbai is among the more affordable cities despite hosting India’s most expensive real estate market.

The report stated that the consistent reduction in apartment sizes has lowered the average ticket price for a residential unit. On an average, newly launched homes have been smaller by 25 per cent between 2014 and 2018.

The report noted that the majority of residential project launches, especially in 2017 and 2018, have been in the affordable and mid-range segment with ticket prices not exceeding Rs 75 lakhs.

“This indicates a possibility of growth of global and Indian organisations in the city,” said Shishir Baijal, chairman and MD of Knight Frank India.