Planning to Move to Mumbai? Learn About the Cost of Living in the City

Mumbai, popularly called the City of Dreams, is one of India's most popular metropolitan cities. With a population of over 18 million, Mumbai is India's financial, commercial, and entertainment capital. It is a city that never sleeps and is always bustling with energy. Mumbai attracts people from all over the country who come here to pursue their dreams and ambitions.

When one thinks about moving to Mumbai and living there, the first thoughts that come to mind might be related to Bollywood, cricket, and street food like Vada Pav. However, Mumbai is much more than just these things. This “city of dreams" is always buzzing with activity. The city's charm is so strong that many people come here every year to achieve success and make a name for themselves.

As a result, people often wonder about the cost of living in Mumbai and are concerned about how much they need to allocate to living in this city.

Things to consider

Mumbai is a densely populated city that is rapidly expanding. It comprises satellite settlements and metropolitan developments. However, living in the central areas can be quite expensive. As a result, most tenants and home seekers tend to look for property options in the eastern and western suburban areas that offer good connectivity and infrastructure facilities.

If you're planning to move to Mumbai, there are multiple aspects of living and factors you need to assess to determine your estimated cost of living. 

• Your current occupation, 
• Whether you're living alone or with family, 
• Your employment status, and 
• Your lifestyle choices are all important factors to consider. 

You'll also need to decide on the type of property you need, such as renting or owning, and whether you want to share a property with others. 

Additionally, you'll need to consider your daily commute, the distance from your work location, and your job type. 

Food expenses, domestic services, and overhead expenses like electric bills, internet bills, and gas supply are also important factors to consider.

Snapshot of the expenses

The cost of living in Mumbai can be broken down as follows:

• Average restaurant bill for two Rs. 1500
• Local transport pass Rs. 400
• Taxi fare (per km) Rs. 22
• Fuel for cars and other vehicles Depends on current rates
• The electricity bill for an 800 sq. ft. apartment (Rs. 3500 on average)
• Broadband or internet service Rs. 800 per month
• Rent for a 1 BHK apartment Rs. 25,000
• The price of a 1 BHK apartment is Rs. 1.5 Crore

The rent for a property in Mumbai can range from Rs. 25,000 to 2.5 lakhs per month. If you plan to purchase a property, keep in mind that Mumbai is one of the most expensive cities in India, with prices for a 1 BHK apartment in central areas starting at around Rs. 1.5 crore for an area of 350-400 sq. ft.

Since Mumbai is home to many upscale residential areas, it is important to keep your expenses in check and choose a location that fits your budget and requirements, considering factors such as monthly income/expenses, connectivity, and infrastructure facilities.

Cost of Renting – an overview 

Mumbai real estate is one of the most expensive globally, and therefore, accommodation is one of the biggest expenses that you will have to bear, particularly when it comes to rental accommodation. The cost of living in Mumbai can be high, and this is reflected in the rental prices. The rent for a property can vary depending on the area you choose to live in. In Mumbai, you have a range of options to choose from, with the average rent for a property in Mumbai and outskirt regions falling under the MMR ranging from as low as Rs.5000-12000 per month in cities like Navi Mumbai, Thane, and so on, to as high as Rs. 30,000-50,000 in areas like South Mumbai, Juhu, and so on.

If you are a student or a bachelor, you can find various options for PGs (paying guest accommodations) and shared facilities in Mumbai. The rent for PGs and shared apartments is relatively lower, ranging from around Rs.5000-Rs.8000 in areas like Thane, Navi Mumbai, and so on. For couples or families moving to Mumbai, a 1 BHK (bedroom-hall-kitchen) apartment of a reasonable size in such areas can cost you somewhere between Rs 8,000-Rs 15,000. You can also explore options for flats for rent in Mumbai to find a suitable place to stay according to your budget and preferences.

Cost of living for families and working couples

Living in Mumbai can be an expensive purchase for families, especially those with children. Rented apartments in the outskirts of the city can cost anywhere between Rs 40,000 to 50,000 per month while purchasing a standard 2 BHK property in Mumbai can set a family back by about Rs 2.5 crore.

Here is a breakdown of the expenses for a family living in Mumbai:

• For a family of four, average restaurant charges can be around Rs 3,000, while local transport passes cost Rs 400 per person. Taxi fares are charged at Rs 22 per km, and fuel expenses can amount to around Rs 20,000 per month.
• An 800 square feet apartment can cost around Rs 3,500 for electricity bills and broadband services cost Rs 800 per month.
• Rent for a 2 BHK apartment can be around Rs 50,000 per month, and the cost of buying such an apartment can be as high as Rs 2 crore.
• Household expenses, including school fees, domestic help, food, and accessories, can amount to Rs 30,000-35,000 per month, or about Rs 4 lakh annually.
• For transportation, car maintenance in suburban areas can cost as low as Rs 6,000 per month, while fuel expenses can range around Rs 10,000 per month for a 20-km driving distance on weekdays.

While renting a home can be a more cost-effective option, purchasing a property has advantages. 

For working couples, the cost of living in Mumbai can range between Rs 30,000-60,000 per month, depending on the location of the rented property. Purchasing a 1 BHK property in Mumbai can lead to you spending anywhere in the range of  Rs 80 lakh to 1.5 crores.

Other costs to be considered 

Transportation

Mumbai has a well-developed public transportation system, and it is relatively affordable. The Mumbai local trains are the city's lifeline, and they are the most popular mode of transportation. A one-way train ticket in Mumbai can range from Rs. 5 to Rs. 100, depending on the distance. The cost can be significantly higher if you prefer private transportation, such as taxis or ride-hailing services.

Food

Mumbai is known for its diverse culinary scene, and you can find food from all over the world in the city – there is no dearth of places in Mumbai when it comes to food and fun. Eating out in Mumbai will entirely depend on you - you can get a great vada pav for Rs.10 or choose a swanky restaurant where the sky is the limit. Eating out in Mumbai can be expensive, especially if you are dining at a high-end restaurant. The cost of a basic meal (not fine-dine) at a mid-range restaurant in Mumbai can range from Rs. 500 to Rs. 1,500, while a fine-dine meal at a high-end restaurant can cost you upwards of Rs. 3,000. If you prefer to cook your meals at home, the cost of groceries can be relatively affordable, depending on where you shop.

Utilities

Utilities such as electricity, water, and gas can also add to your monthly expenses in Mumbai. The cost of electricity in Mumbai is relatively high compared to other Indian cities, and it can cost you anywhere between Rs. 3,000 to Rs. 6,000 per month, depending on your usage. The cost of water and gas is relatively affordable, and it can range from Rs. 500 to Rs. 1,000 per month.

Entertainment

You probably already know of the city that never sleeps! Yes, Mumbai is a city that has something to offer for entertainment, no matter the time of the day; There is always something to do here. The city has a vibrant nightlife, and you can find several bars and clubs open until late at night or even the wee hours of the morning. The cost of entertainment in Mumbai can vary, depending on what you choose to do. A movie ticket in Mumbai can cost you anywhere between Rs. 150 to Rs. 500, while a night out at a club can cost you upwards of Rs. 5,000.

Education

If you have children, the cost of education can be a significant expense in Mumbai. The city has several reputable schools and colleges, but the fees can be relatively high. The cost of education in Mumbai can range from Rs. 20,000 to Rs. 1,00,000 per year, depending on the institution and the course.

Conclusion

Compared to other Indian cities, the cost of living in Maharashtra’s capital is relatively high, but it offers a high standard of living and endless opportunities. Your Mumbai lifestyle will shape up the way you decide. With a proper plan in hand and systematic budgeting, you can enjoy everything that Mumbai has to offer and live a comfortable life in the city of dreams.