Middle-Class Mumbai Homebuyers Trapped in Lifelong EMIs for “Sea View” Dreams

Mumbai Real Estate Reality Check
Buying a home in Mumbai has become a lifelong financial commitment rather than a lifestyle upgrade, warns wealth advisor Abhishek K. According to him, India’s middle-class homebuyers are not purchasing houses—they are buying decades of EMIs, often for flats with polluted sea views.

EMIs Higher Than Salaries
Abhishek K. shared his insights on LinkedIn, highlighting the stark financial reality. A typical 2–3 BHK flat in Mumbai costs between ₹3 crore to ₹8 crore. Even with a 20% down payment, families must pay ₹60 lakh to ₹1.6 crore upfront. The remaining ₹2–6.4 crore borrowed at an 8.5% interest rate translates to monthly EMIs ranging from ₹1.5 lakh to ₹5.1 lakh—far beyond the reach of an average middle-class salary.

The Mirage of Sea-View Luxury
Many buyers are lured by the promise of a luxurious sea-view lifestyle. However, Abhishek points out that the reality is often damp, polluted air and contaminated seawater, far removed from the dream of pristine coastal living. He calls this a collective illusion rather than luxury, cautioning buyers against the trap of “status-driven” real estate.

Better Alternatives Across India
Abhishek also notes that other parts of India, including Kerala, Uttar Pradesh, Madhya Pradesh, and Rajasthan, offer far better living standards at a fraction of the cost. Families can build 2,000–3,000 sq. ft. homes with gardens, clean air, and vibrant communities for far less than a small Mumbai flat. In terms of lifestyle, these homes often provide ten times the quality of life compared to high-priced Mumbai apartments.

Conclusion
The Mumbai real estate market continues to trap middle-class buyers in lifelong EMIs, driven more by the allure of status and sea-view promises than by actual value. Experts advise carefully weighing financial sustainability against lifestyle aspirations before making such investments.