With home prices shooting up, can you still buy one for Rs 1 cr in Mumbai?

 

Is Rs 1 crore enough to buy you a house in Mumbai in 2025? While prices in the financial capital of India are often as high as its skyscrapers, 1 Finance Mumbai Home Price Index suggests that some areas in the Western Suburbs—Goregaon, Malad, Kandivali, and Borivali—offer some options. 

 

Priced between Rs 21,058 and Rs 28,277 per square foot (PSF), these neighbourhoods are the city's sweet spot for homebuyers seeking affordable homes within Rs 1 crore.  

 

1 Finance is a personal finance advisory firm backed by the Marwadi Chandarana Group. The company has conducted a per square feet analysis of Western Suburbs --- Borivali, Kandivali, Malad, and Goregaon as well as analysed the home price index in Mumbai for the last five years. The PSF (Per Square Feet) values are calculated by averaging the prices of affordable, mid-range, and luxury residential properties across the Greater Mumbai region. Property valuations, price trends, and growth projections are indicative and subject to market fluctuations, regulatory changes, and unforeseen economic factors.

 

According to the 1 Finance Mumbai Home Price Index, over the last five years, the overall Western Suburbs (extending from Dahisar to Vile Parle) has risen by 4% per annum (pa), while Greater Mumbai has increased by 5% pa, showing minimal difference in growth. Current rates stand at Rs 32,632 PSF for Greater Mumbai and Rs 26,814 PSF for the Western Suburbs.

 

KEY FINDINGS: 

•  The chart above contrasts how much square feet a Rs 1 crore corpus could buy in  February 2021 versus February 2025 in different Western Suburbs
• During that period, Goregaon East prices appreciated the most, followed by Malad East and
• Borivali West
• As of February 2021, Malad East offered the best value at  562 square feet/Rs 1 cr, but by February 2025, Kandivali West became the most affordable at 475 square feet/Rs 1 cr
• Kandivali East leads with the highest 10-year growth rate of 6% pa, followed by Borivali West at 5% pa

 

"In 2024, 33% of Greater Mumbai's property registrations were from the Western Suburbs, with 58% from these areas. First-time buyers can find 1 BHKs for Rs 1-1.5 crore, making them ideal for affordable housing," said the analysis.  

 

"The Western Suburbs of Mumbai continue to be a focal point for residential development, representing 41% of Greater Mumbai's 2024 launches, with Borivali, Kandivali, Malad, and Goregaon accounting for 72% of this activity. The operational Metro Lines 2A and 7, alongside thriving corporate parks and retail hubs, continue to drive steady price growth. However, buyers should note that the current property supply would take approximately four years to be absorbed in present sales rates, reflecting Greater Mumbai's broader market challenges," said Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance.