Would Housing be a Dream in the Dream City of India?
Ref. No.: ME0013

Would Housing be a Dream in the Dream City of India?
Mumbai, the financial capital of India, is one of the most expensive places to rent or buy a house.
Buying a new house in Mumbai is beyond the reach of middle income group. Renting a flat in affluent neighbourhoods like Bandra, Juhu, Worli, Santacruz and Khar pinches the purse by around INR
3,000 per sq.ft./month. Both commercial and residential property prices in Mumbai have been on a steady rise. Mumbai has witnessed very high rentals especially since 2006. Mumbai turned to be one of the most expensive cities in the world to buy or rent a condominium unit in 2007 (Exhibit I).

Exhibit I
City-centre Condo Prices (in US$)
London
New York
Moscow
Hong Kong
Tokyo
Singapore
Mumbai
Shanghai
Bangkok
Beijing
New Delhi
Manila
Jakarta
Bangalore
Phonom Penh

To buy (per sq. m.)
To rent (per month)

0

5,000 10,000 15,000 20,000 25,000

Source: Cruz Christian Prince, “Mumbai housing is the priciest in the developing world”, http://www.globalpropertyguide.com/ investment-analysis/Mumbai-housing-is-the-priciest-in-the-developing-world, June 25th 2007
This case study was written by Hepsi Swarna under the guidance of Akshaya Kumar Jena, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.
© 2009, IBSCDC.
No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner.
Background Reading: Chapter 3, “Basic Elements of Supply and
Demand”, Economics (Paul A. Samuelson and William D. Nordhaus)

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Would Housing be a Dream in the Dream City of India?