(MENAFN- Live Mint) Renting a 1 BHK flat in Mumbai costs around ₹5.18 lakh annually, according to a report by CREDAI-MCHI. This is higher than the average annual salary of junior-level employees, which is ₹4.49 lakh.
The report raises concerns that Mumbai's high rental prices may force professionals to move to more affordable cities, leading to a 'brain drain'. It also highlights that in cities like Bengaluru and Delhi-NCR, the annual rent for a 1 BHK flat is nearly half of Mumbai's cost, at ₹2.32 lakh and ₹2.29 lakh, respectively.
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According to the report, the average annual salary for employees in Bengaluru and Delhi is ₹5.27 lakh and ₹4.29 lakh, respectively.
The report by the real estate developers' body adds that the negative disposable income in Mumbai makes it hard for people to cover basic living expenses. Negative disposable income means that, after paying for essential expenses like rent, food and bills, a person does not have any money left or may even fall short.
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For mid-level employees in Mumbai , who earn about ₹15.07 lakh annually, the report shows they spend almost half their salary on rent for a 2 BHK apartment, costing ₹7.5 lakh per year. In comparison, mid-level employees in Bengaluru and Delhi-NCR spend significantly less on rent.
They spend ₹ ₹3.90 lakh annually in Bengaluru while earning ₹16.45 lakh. In Delhi, they earn around ₹14.07 lakh annually and spend ₹3.55 lakh for rent, as per the report.
Senior-level employees
Senior-level employees, earning around ₹33.95 lakh annually, spend ₹14.05 lakh on rent for a 3 BHK in Mumbai.
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In contrast, senior professionals in Bengaluru and Delhi-NCR spend much less, paying ₹6.25 lakh and ₹5.78 lakh, respectively, for similar accommodation. Many senior professionals are leaving Mumbai for more affordable cities in search of a better lifestyle and more savings.
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