🟢 At a Glance
Yes, you read that right. A 1BHK flat in Mumbai is now priced at ₹1 crore. For the same amount, you could buy four 2BHKs in tier-3 cities and still afford to donate a kidney out of pure financial trauma. India’s housing market in 2025 has officially entered the “are you serious?” zone. But the real question is — why is this madness still selling out in minutes?
📦 The ₹1 Crore Flat Starter Pack
Let’s break down what you get in this ₹1 crore 1BHK:
| Feature | Reality Check |
|---|---|
| Carpet Area | 325 sq. ft (less than a Zoom call background) |
| View | Neighbour’s underwear on drying line |
| Parking | ₹15 lakh extra (for a Nano you don’t own) |
| Registration + GST | ₹8–10 lakh more (of course, above 1 cr) |
| Location | 2 km walk from the station, 3 km from society |
| Builder Promise | “Sea-facing” if you squint hard on the roof |
Meanwhile, in places like Nagpur, Indore, Bhopal, Siliguri, ₹1 crore can buy:
- 4 decent-sized 2BHKs
- 1 villa with a courtyard and a cow
- A plot of land large enough to start a cricket academy
- And you’ll still have money left for Uber Lux rides for a year
💡 Why the Hell Is Mumbai So Expensive?
Let’s be honest. Mumbai isn’t just selling you a flat. It’s selling:
- ✨ “Dreams”
- ☠️ False scarcity
- 🚇 False promises of metro connectivity
- 🤡 And a 5-year waiting period for possession
Here’s what’s driving it:
- Limited land: Because water on three sides and political paralysis on the fourth
- NRI demand: NRIs love investing in 2BHKs they never live in
- FOMO: People think prices only go up. They also thought Paytm was worth ₹2,100.
- Speculation: Every second “investor” in Mumbai is holding 3 flats, none of which he lives in
- Herd behaviour: “Amit just bought in Chembur, bro — we should too!”
🤯 The Real Cost of a ₹1 Cr Flat
Let’s calculate what you’ll pay monthly:
| Expense | Monthly ₹ |
|---|---|
| EMI (₹1 Cr @ 8.5%, 20 yrs) | ₹86,800 |
| Maintenance (avg ₹8/sq ft) | ₹2,600 |
| Parking EMI | ₹8,000 |
| Domestic help | ₹4,000 |
| Total Monthly Cost | ₹1,01,400 |
And all this for a flat where you can’t stretch your legs without touching the wall.
🧠 But Still… People Are Buying. Why?
Because:
- Everyone thinks this is their last chance.
- The idea of “owning in Mumbai” has mythical status — like becoming the next SRK
- Middle-class guilt: “Beta rent mein paisa barbaad ho raha hai” syndrome
- Banks are ready to give you a ₹1 crore loan for a 300 sq ft box. No questions asked.
🤌 Tier 3 Flex > Metro Stress
Let’s compare:
| Feature | Mumbai 1BHK (₹1 Cr) | Tier 3 Combo (4 Flats) |
|---|---|---|
| Carpet Area | 325 sq ft | ~3000 sq ft (combined) |
| Location | Traffic + noise + dust | Quiet lanes + trees + cows |
| Monthly Outgo | ₹1 lakh+ | ₹20–25k (if any loan at all) |
| Mental Health | Downhill | You still laugh sometimes |
| Investment Return | Maybe 4–5% CAGR | 6–8% + rental income |
💣 Housing Market = Ponzi Scheme with Brochures?
If you think about it, India’s housing market is now just a Ponzi scheme propped up by EMIs:
- Builders delay delivery
- Buyers flip under construction homes
- Banks finance both builder and buyer
- Rent is a joke compared to EMI
- Nobody cares — as long as the music plays
📉 What Happens If the Music Stops?
Let’s imagine a scenario where:
- Interest rates go up
- Job markets slow down
- A few builders default (again)
- NRIs stop buying
Then suddenly…
Mumbai flat prices: 📉
Resale value: 🚫
Liquidity: 🧊
You: Trapped in a ₹1 cr shoebox with lifetime EMIs and one kidney
🧂 EduInvesting Take
This is real estate’s version of “emperor has no clothes”. Everyone knows it’s overpriced, under-delivered, and over-marketed. But no one wants to say it — because your neighbour just “booked in pre-launch” and your boss already owns two.
So here’s what we say:
A ₹1 crore flat isn’t an asset.
It’s a lifestyle tax disguised as an “investment”.
🎯 Fair Value?
Let’s run a back-of-the-napkin fair value using rental yields:
- Typical 1BHK rent in Mumbai: ₹25,000/month
- Annualized yield: ₹3 lakh / year
- Reasonable rental yield: ~3.5% (for cities like Mumbai)
- So actual “fair value” = ₹3,00,000 / 0.035 = ₹85.7 lakh
That’s still generous. But at least we’re being honest.
🧨 What Should You Do Instead?
- Don’t rush. Especially not with pre-launch hype
- Consider Tier 2/3 investments for actual returns and livable space
- If you really want to live in Mumbai — rent. And invest elsewhere.
- And for god’s sake, don’t take a ₹1 crore loan for a glorified kitchen
🏷️ Tags:
real estate bubble, mumbai property prices, 1bhk for 1 crore, real estate 2025 india, tier 2 vs metro, property investment satire, eduinvesting
Author: Prashant Marathe
Date: 3 June 2025
