India’s Most Expensive Cities (2025): Mumbai remains most expensive Indian city to live in

Rising real estate, rents, and daily expenses push major metros to new affordability limits

India’s cost of living continues to climb, especially in its largest metros. Even as salaries rise, many residents are finding it harder to save money or maintain the same standard of living. Here are the six most expensive Indian cities in 2025 and what’s driving their high costs.

1. Mumbai – The Unrivaled Cost King

• Mumbai remains the top-most expensive city in India. Premium residential areas like Malabar Hill, Bandra, and South Mumbai regularly see real estate rates above ₹1,00,000 per square foot.
• Rents for mid-size apartments in these areas are extremely high. Add in costs for transportation, utilities, lifestyle and the burden becomes massive.
• Multiple surveys—including Mercer and Numbeo—place Mumbai at the top in India for cost of living. 

2. Delhi NCR – Capital Premium But Costly Living

• Delhi NCR (including Gurugram and Noida) is second on the list. Real estate prices in prime zones and rents have surged. 
• Along with housing, costs for private education, healthcare, and lifestyle amenities push up expenses for families. 

3. Bengaluru – IT Hub Under Price Pressure

• Bengaluru’s tech boom has raised demand drastically in localities like Koramangala, Indiranagar, Whitefield, among others. Rent and housing prices in these areas have reached record highs. 
• Other living expenses—food, transportation, congestion—add up, making “affordable Bangalore” increasingly hard to find. 

4. Hyderabad – Luxury Demand X Growth

• Hyderabad has shifted from being relatively affordable to one of India’s more expensive housing markets, especially in tech-oriented zones like HITEC City and Gachibowli. 
• Luxury flats above ₹3 crores are now common in new sales, increasing overall cost pressures. Daily living expenses (healthcare, schooling, entertainment) are also rising quickly.

5. Pune – Emerging Metro with Premium Localities

• Pune’s growth in IT, education, and automotive sectors has boosted both population and property demand. Localities such as Koregaon Park, Kalyani Nagar, Hinjewadi are among the costliest residential areas. 
• Rental rates and daily expenses (commute, food, utilities) are rising, narrowing the affordability gap especially for middle-class earners.

6. Chennai – Tradition, Coasts & Rising Costs

• Chennai balances tradition and modern growth; still, coastal premium neighbourhoods like Adyar and Anna Nagar have seen steep rises in housing costs. 
• Private schools, healthcare, and lifestyle amenities in Chennai add up, pushing households in premium sectors to spend more.

What This Means for You

• Housing remains the biggest cost driver: Whether you’re buying or renting, residential property in these metros is significantly more expensive than in lesser-known cities.
• Lifestyle follows housing: Once you pay more for your home, all other costs—transport, groceries, utilities, school fees—tend to scale up.
• Growing affordability gap: For many, these rising costs make ‘comfortable living’ difficult, even with decent incomes.
• For investors/developers: These metros still promise high returns in the premium segment, though risks of oversupply or sluggish demand in mid-range are rising.