Mumbai ranks among world's four most expensive cities: Study

Mumbai ranks among world's four most expensive cities: Study

Mumbai, along with fellow Asian cities, Hong Kong, Beijing and Shanghai is considered most expensive in the world. According to a report by Business Standard, a recent study found that a household with the local median income, can afford a buy an apartment measuring 90 square meter (970 square foot) only after 30 years.

The study also discovered the "remarkably low" return from rents in Mumbai, Shanghai, Beijing, and Delhi. The gross rental yield was lower than 10 year government bond yields in 2016 compared to Tokyo, Sydney, New York and Seoul.

Changes in interest rates will also put downward pressure on prices, in addition to rising supply and efforts in some places to cool red-hot markets.

Rising prosperity and demographic factors in the long term should continue to support house prices in Asian cities. This is especially for those in less-developed economies. However, there is a possibility of the population of cities like Tokyo and Seoul shrinking over the next 8 years. This will likely reduce the demand for housing.