MumbaiAbout

Before deciding to shift to a new city, one needs proper understanding of the general cost of essentials in that city. It would not matter much to those with Fat Pockets. But since you have landed at this page, this should mean that you are not from those millionaires club, unless the reason for you being here is research related activity. We would give you the right picture of the cost incurred so that you can plan accordingly. 

What is definition of cost of living? 

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Cost of living is often used when comparing how expensive it is to live in one city versus another.

But, Can it be just one set of values of the goods and services?

Although, the above definition is correct, but each person has a different level of living based on comfort and upbringing and of course earning potential.

And for that reason we would some provide multiple values based on the lifestyle choice.

Cost of Living based on locations? 

Also, when we are talking about Mumbai, we are talking about a city with a size 604 km square. In addition, there are adjoining locations in the outskirts namely : Navi Mumbai and Thane, which does not fall under the Mumbai district officially but are very much a part of Mumbai. And it depends where exactly will you be staying in the Mumbai.

For Instance, a 1 BHK flat can be obtained in Ambernath for 3500 INR and Nalasopara for 4000 INR. For the same size 1 BHK, you might have to shell out minimum 65,000 INR in areas like Walkeshwar and Kemps Corner.

Our Estimate of Monthly Expense for single person

The 3 different columns represent 3 different life style choices where for example Upper Middle class lifestyle choice would include living in a posh suburb/locality of the city. Entertainment expenses would go high with inclusion of Expensive Dining, Transportation costs would tend to increase with private transport as seen in the table above.

Also, the above expenditure are for single person. However, with addition of every additional member, the value would not double. It would not be even 1.5 times, as there would be cost synergies attached to calculation. There would be actually no increment in Accommodation expense since 1 BHK can very well accomodate 2-3 members. Even other items would increase by small values only.

As a thumb rule for some approximation, one can multiple the original value by 1.2 for each of the class. So for 2 person living a Lower Middle lifestyle, the total cost would be approx 20K INR.

Housing Rental: Biggest Contributor to Expense

As can be seen in the pie-chart above, the Accommodation expense makes up for around 49% of the total expense. And this is a well understood considering the super high land cost in Mumbai. Apart from Rent, other expenses are nearly the same value as in other cities of India.

Note: The above chart contains data from the first column(Lower Middle: 16200 INR) of the table displayed in previous section.

Effect of Inflation on Cost of Living

Although the Housing Costs in Mumbai have somewhat stabilized in the last 2-3 years, the effect of inflation will be seen on housing and other items which will keep pushing the Overall expenses upwards.

Time for Stats

As per research by Expatistan.com, Mumbai is:

1. 1st most expensive city in India (out of 7).

2. 13th most expensive city in Asia (out of 22).

3. 214th most expensive city in the World (out of 245).

Note: The above stats are for a predefined level of living set by them.

Other Useful Data

Table below provides the per sq ft rates for Residential Properties in areas in Mumbai

Central Suburbs	Capital Values Rate/Sq ft (INR) (min / max)	Updated on
Badlapur	2800 - 3500	Feb 2015
Dombivali	4500 - 6000	Feb 2015
Ghatkopar	12000 - 21000	Feb 2015
Ghodbunder Road	6000 - 10000	Feb 2015
Mulund	10000 - 14000	Feb 2015
Naupada	13000 - 18000	Feb 2015
Powai	13000 - 20000	Feb 2015

Navi Mumbai	Capital Values Rate/Sq ft (INR) (min / max)	Updated on
Kharghar	6500 - 9500	Feb 2015
Panvel	4500 - 6500	Feb 2015
Vashi	10000 - 15000	Feb 2015

South Mumbai	Capital Values Rate/Sq ft (INR) (min / max)	Updated on
Colaba	33000 - 48000	Feb 2015
Cuffe Parade	35000 - 71000	Feb 2015
Tardeo	40000 - 60000	Feb 2015

Western Mumbai	Capital Values Rate/Sq ft (INR) (min / max)	Updated on
Andheri	14000 - 21000	Feb 2015
Bandra West	40000 - 60000	Feb 2015
Borivali	11000 - 15000	Feb 2015
Dahisar	8000 - 10000	Feb 2015
Goregoan	13000 - 15000	Feb 2015
Mira Road East	5500 - 7500	Feb 2015
Virar	4500 - 5500	Feb 2015

* Source: Knight Frank via MoneyControl.com

References

Investopedia

Wikipedia

MumbaiPropertyExchange

Expatistan

Quora
MoneyControl


Intro Image Credit : Pixabay.com