Mid-Day Explains | What is the cost of living in Mumbai? Decoding the money required for students and bachelors to survive in the city

The financial capital of the country is often deemed to be the costliest city to live in India. While it provides many work opportunities, it also presents high expenses, especially in terms of rent. Mumbai is a cosmopolitan hub that attracts students and working professionals from all over the country and abroad.

However, one of the most asked questions that has seen debates between Mumbaikars and non-Mumbaikars alike is the cost of living in Mumbai.

According to Mercer's Cost of Living Survey 2024, Mumbai is the most expensive city in India for expatriates. It is placed 136th globally. In Asia, it is the 21st most expensive city.

So, how much money is actually required to live in Mumbai? The answer varies greatly for students, bachelors, couples and families. Here, we did our research and spoke to several people to decode the cost of living for students and bachelors in Mumbai.

Which areas are affordable? How much does the transportation cost? What are the other expenses that one might incur? We find out.

Major Expenses

Rent

Rent is one of the major factors that makes Mumbai expensive. Even within Mumbai, rent varies greatly.

According to a report by Anarock, rentals across top cities including Mumbai saw a 2-4 percent quarterly growth in Q2 2024. In Q1 2024, quarterly rental growth was almost double between 4-9 percent across markets.

Due to the increasing rent in the city, students and bachelors prefer staying with flatmates or roommates while renting a flat or hostel room.

Aman', a product manager from Andheri, says, "I stay in a fully-furnished 3 BHK flat with all amenities along with two other flatmates. We were paying Rs. 64,000 per month in 2022, which increased to 70,000 the next year and currently, we are paying 78,000 per month."

Sanvi', a student staying in a hostel in Colaba says, "I am paying Rs. 7000 rupees a month at a hostel in Colaba. It includes stay and electricity but not food. We have to cook food separately and the room is on a sharing basis. But I have friends who have rented hostel rooms and PGs for Rs. 20,000 also."

Delara', who came to Mumbai as a student and is now a working professional, comments, "I and my flatmate were lucky that we got a 1 BHK flat in Andheri for Rs. 30,000 in a decent colony. Had that not happened, we would have had to do a lot of house hunting."

Due to the great variation in property prices and rents, students and bachelors usually live in certain areas of the city that are comparatively more affordable.

"On the central line, people who come for jobs usually choose areas like Bhandup and Mulund because Ghatkopar and Powai are too expensive. They are usually not able to afford the rent there," informs a Bhandup-based real estate broker.

On the Western line, areas like Borivali and Kandivali are preferable. People also tend to gravitate towards Thane and Navi Mumbai due to comparatively lower rent there.

"I once rented a 1 BHK flat in Walkeshwar for Rs. 1.2L. So, all areas Dadar onwards are very expensive. I have never seen a student or bachelor rent a flat in South Bombay areas like Colaba, Fort, Churchgate, etc.," he further reveals.

Why is house renting in Mumbai so expensive, we ask.

"Real estate prices are booming. A lot of new developers have come in almost all areas of the city. Consequently, both house buying and renting have become expensive in Mumbai," he comments.

Transportation
Due to the sheer distances between places in Mumbai, transportation is a key expenditure area. An advantage that Mumbai offers in this domain is a well-connected and affordable local train network. Public transportation infrastructure, although struggling, provides students and bachelors an affordable means of commuting within the city.

"I keep a monthly budget of Rs 1500-2000 rupees for the commute. This includes a monthly first-class local train pass of around Rs. 600 and an occasional commute by cab or rickshaw," informs Delara, who hails from Aurangabad.

"The travel expenses can not be similar to Aurangabad because the distances are so different. At home, you have your car. If we divide the number of people using the car by the petrol price, I think the per head cost would still be less than what one spends individually travelling here. But since I use public transportation, it is still a lot cheaper," she adds.

"The distance between my home and office is around 5 km. I spend an average 200 every day for a return journey by auto," informs Aman.

How high is Mumbai's cost of living compared to other cities?
According to the Mercer report previously mentioned, Delhi is the second most expensive city in India, followed by Chennai and Bangalore. However, the cost of living in these metro cities is much higher than in Tier 2 and Tier 3 cities.

"A tier 2 city like Ludhiana is less expensive. Back home, we have rented out the entire first floor of my brother's clinic for around Rs. 13,000. Here in Mumbai, you wouldn't get a 2 BHK for anything less than Rs. 50,000 in a decent area and society. I was in Pune also. Back then in 2019, a fully furnished 2 BHK could be rented in Rs. 20-25K there. Here, it is almost double. So, it's definitely expensive," says Aman.

"I have previously studied in Chennai. There I was staying in the college hostel. They were charging for other facilities as well. So, it was costing me around Rs. 14,000-15,000 per month. But there were no additional expenses. It would have been cheaper if I had stayed outside college. I feel Mumbai is more expensive," comments Sanvi.

How much money is required to survive in Mumbai?
With major expenditures on rent and transportation and other expenses like utilities and grocery, how much money is required to live in the city?

"I think the basic minimum monthly expense for a student would be Rs 11,000. That's the minimum," says Sanvi.

"This question does not have a singular answer. It depends on a lot of factors like where you are staying, whom you are staying with, living conditions, etc. The money required to live in Mumbai also largely depends on your lifestyle choices like how often you eat outside, recreation, etc. For living in a decent colony with flatmates, I think a salary of at least 35-40K in hand is important," feels Delara.

"That's a subjective answer. But if you want to live in a spacious apartment with good facilities, I think a salary of Rs 60,000-70,000 is important. But again, it greatly varies," comments Aman.

After speaking to several real estate brokers and people in the city, here's the breakdown of average expenses students and bachelors might incur in Mumbai.
(All figures are in rupees)

Rent (Flat)

Kalyan-Dombivli
1 BHK: 7000-10,000
2 BHK: 12,000-15,000
3 BHK: 20,000-25,000

Thane
1 BHK: 20,000-23,000 (around Ghodbunder Road), 25,000-30,000 (near the station)
2 BHK: 30,000-35,000 (around Ghodbunder Road), 38,000-40,000 (near the station)

Mulund, Bhandup
1 BHK: 31,000-35,000 (near station), 25,000-27,000 (away from station)
2 BHK: 38,000-45,000

Ghatkopar
1 BHK: 35,000-40,000 (East)
2 BHK: 60,000-65,000 (East), 50,000-55,000 (West)

Powai
1 BHK: 40,000-45,000 (The rent can go as high as 50,000 in the Hiranandani area)
2 BHK: 65,000-70,000

Dadar
1 BHK: 50,000-55,000
2 BHK: 60,000-70,000
3 BHK: 85,000-1,00,000

Andheri
1 BHK: 30,000-45,000
2 BHK: 50,000-65,000

Bandra (West and BKC Area)
1 BHK: 65,000-70,000
2 BHK: 1,00,000-1,50,000

Malad, Borivali, Kandivali
1 BHK: 30,000-35,000
2 BHK: 40,000-50,000

Please note that these are average rents for unfurnished/semi-furnished flats. These will vary depending on specific locality, society, etc.

Rent (Hostel/PG)
With electricity, without food - 7000-16000
With electricity, with food - 16000-25000
The costs vary depending on the area of the PG and room-sharing arrangements.

Utilities

Electricity

With AC
1 BHK: 2500-3000
3 BHK: 8000-9000

Without AC
1 BHK: 1800-2300
3 BHK: 3000-4000

Gas
LPG cylinder - 802.50 for 14.2 kg cylinder
Piped gas - 48 per SCM

Grocery
3000-10,000 per head (depending on factors like how often you cook at home, etc.)

Food
Tiffin service - 1000-3000 per month
Street food - 50-150 per meal
Eateries - 300-700 per meal
Fine dine restaurants - 1500-2000 (for 2) per meal

Transportation

Local train
Single journey ticket - 5-165 (Depends on distance you are travelling, whether it's second class or first class and whether it's AC train or non-AC train)
Monthly pass - 105-3150

Auto-rickshaw
Base fare - 23 for 1.5 km with subsequent increase of 1 or 2 rupees every 100 m
Base fare after midnight - 29

Kaali Peeli taxi
Base fare - 28 for 1.5 km with subsequent increase of 1 or 2 rupees every 100 m
Base fare after midnight - 35

BEST buses
Non-AC - Starts from 5
AC - Starts from 6

Metro
Single ticket journey - 10 (1-3 km) - 80 (more than 42 km)
Currently, only two metro lines are functional in Mumbai - Versova-Andheri-Ghatkopar and Dahisar-DN Nagar.

Additional expenses
House help and cook - 2000-4000 monthly depending on the area of the flat and the number of people living
Entertainment (Movies) - 150-600 (depends on the movie, theatre, show timings, seat selection, etc.)
Shopping - It varies greatly depending on products, markets, brands, etc.

While this is the basic break-up of essential expenses, one can incur other costs depending on lifestyle choices. Hence, it is advisable to do comprehensive research before moving to the city.

'Names changed or only first names used

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