Why Is Mumbai Real Estate So Unaffordable? Insights from Dr. Niranjan Hiranandani-Forum-Culture Informatique

Mumbai is one of the most expensive real estate markets in the world, and owning a home here remains a distant dream for many. But what makes Mumbai real estate so out of reach? Renowned real estate visionary Dr. Niranjan Hiranandani breaks it down in his powerful YouTube podcast episode, “What Makes Homes Unaffordable in Mumbai.” According to him, one of the primary issues is excessive government taxation—nearly 50% of the total cost of a home in Mumbai goes directly or indirectly to the government. These charges include GST, stamp duty, FSI fees, and more. The outcome? Common Mumbaikars are left struggling with sky-high property prices while half of what they pay goes toward regulatory levies.

Another key point raised by Dr. Niranjan Hiranandani is the artificial price inflation caused by government-mandated ready reckoner rates. These rates set an artificial price floor, meaning properties can’t be sold below certain thresholds—even if market demand allows for it. Developers who attempt to sell below these rates risk penalties, including scrutiny from the Income Tax Department. This flawed system has left Mumbai real estate trapped in a cycle where affordability is sacrificed for policy compliance. Dr. Hiranandani further explains that slum rehabilitation costs are passed on to middle- and upper-middle-class buyers, compounding the burden on honest home seekers.

In the podcast, Dr. Niranjan Hiranandani emphasizes that without serious reforms, the Mumbai real estate sector will continue to be inaccessible for the average citizen. He advocates for reduced government levies, streamlined approval processes, and the creation of a unified planning authority to replace the current fragmented governance system. These changes would not only improve the ease of doing business for developers but also increase the supply of affordable housing. With his decades of experience, Dr. Niranjan Hiranandani presents a clear, practical roadmap to make Mumbai real estate more inclusive and sustainable in the coming years. His insights are a must-watch for anyone interested in the future of urban housing in India.