Cheapest Cities in India, Revisited Almost 10 Years Later

http://in.finance.yahoo.com/photos/t...181-slideshow/

So...

Almost 10 years later than the original thread posted on this forum and with a new Worldwide Cost of Living Survey done by the Economic Intelligence Unit ranking Delhi and Mumbai in the top 4 cheapest cities to live---

What's your take?

Those currently living in Delhi and Mumbai, do you think this is accurate?

Isn't the cost of housing in Delhi sky-high?

Do you think there are some other cities in India that should have been included in this list?

And what about some of the cities mentioned in the original thread--Chennai, etc.? Are they still cheaper?

Are there some up-and-coming cities in India where you can get the most "bang for your buck"?

I'm really sorry for the double posting...I am asking for the duplicate to be deleted.

having lived in mumbai id say its not too difficult to live within a budget in Mumbai.

BUT this article omits a very important fact. the survey tracks costs for expats. that puts a completely different spin to the argument.

having spent a few weeks in Brisbane (the only international city i have lived in) and seeing costs there id say it might just be a case of costs rising higher in other cities than Mumbai or Delhi being cheap.

Jag, perhaps you are right about cheapest as according to expat costs. Here's another survey highlighted on Businessweek highlighting 25 of the world's cheapest places to live by expat standards--of which Chennai and Kolkata make the list, but not Delhi or Mumbai...

To give you some background:


All the news articles you see, or read, or watch on TV on the cost of living, in cities around the world are from essentially two organizations. Mercer International & Economist Intelligence Unit.

The first, is an international Placement and Human Resources company, the latter is data analysis and research wing of "The Economist" a conservative newsmagazine.

The both use, New York, NY as a base 100, and then try and pick cost of putting the same or similar executive/expat in various cities in the world. While Tokyo or Zurich top the list, they do so for an extremely tight and expensive real estate. There are other methodological issues, but research design wise the target audience are the Global companies that have to move personnel around.

The U.S GAO also puts a similar index, it also includes hundreds of US cities and also international one for US Government agencies, like State Department and other entities that have to put personnel in various capitals and major cities. The governmental index is used for adjustments for personnel going on less than few month deployment or short term temporary assignment. It essentially help in hotel rates allowed and the per diem reimbursements to be given by various agencies.

I think the best or closest rough index was the Big Mac index, also done by "The Economist" While not every country in the world may have a McDonalds, my good friends at Pint Price thought beer was a better index

Nycank, thanks for posting about the Big Mac index. It seems like food is inevitably more affordable in other countries.

It seems the housing is the rough point--from what I've read on IM, housing prices are going up everywhere in India (for a decent living arrangement suitable for our "western" standard of living).

And then of course, there's the "foreigner's penalty" where you inevitably wind up paying more than a local, anyways--especially for housing.

But again, from what I've gathered on IM and from scanning prices on Craigslist, Delhi housing is very high cost, while other cities such as Chennai are lower--but rising as well.

In this way, I imagine its much like any U.S. city where some are more expensive than others--In NYC, 10 years ago $1200 got us a 2br/1ba upstairs apartment w/no a/c and the basics, whereas even 3 years ago $745 got us a 3br/2ba house an hour from San Antonio with a huge backyard in a quiet neighborhood w/good school.

What I want to know is, in 2012, where can a Westerner find the most affordable housing in India?

Shafting, goes on all over and white tax or NRI loading is inevitable unless your good pal is a local.

The wife and i have been building a few houses in the past six years in the hills - the cost of doing that has doubled in five, all of it, from sand, aggregates, blocks, steel, cement, labour.

Besides affordable housing in my mind is not the question, you either can or can't afford to buy this one, only you know what figure you have to invest. The thing is you can have a roof over yr head easy enough, but what about the basics of water, light and garbage management - how much is one prepared to have those items secured into the future, and what guarantee is secure - when water, bijli and garbage management are all severely strecthed already... oh silly me, you want to rent not buy, never mind .

Thanks for the input, Paleface.

Maybe it's just me, but light, water, and garbage seem like such small potatoes compared to finding a decent, but affordable place to live!

How do you think people in US decide where to live ? Why do people move ? Why to hundreds of teenagers run or leave homes and arrive at the Port Authority Bus Station ?

What you can afford is only you can decide. What percentage of your monthly budget you want to allocate to "Live" depends on what you define as living...

Well that's the taking it for granted thing in a way, as basics seldom fail in the USA, Europe etc

Whereas in India/Asia of course the electric is off a lot, or the water is on for a few hours only, and the garbage pile on the road may or may not get cleared??? The place may be luxurious but quickly becomes miserable if a lot of head time has to be spent on the basic amenities/services. Did you mention Delhi, a city?

Ahhh...good question--more often than not, people move because of a job.

Sometimes, people move from a city because it's just too expensive.

But wouldn't you say that these choices are made a bit different in India, where a choice to live in a small town, with small minds and little to no resources, can make you just as miserable as navigating life in a big city?--I've "been there, done that" in India

Don't get "philisophical" on me, NYCank!

Just the facts, please, just the facts.

Well what are they? because it's difficult to guage the feasibility of the enterprise based on emotion alone, in this world of money.

nevertheless i for one appreciate your wish to live in India, after all i did that too. But then i stayed back to back on x visa's and a story unfolded and i a now PIOwallah, like several on the forum... anyhow i've now forgotten whether this is a try it out thing or an actual determination to live the rest of the life in India?

I'm a "PIOWallah" also, and no, this is not a "try it out" thing.

I assure you, I have lived in India before--it wasn't just a passing fancy. (I have observed that's a common thing on IM--to make sure that people are coming to India for the right reasons and are prepared...)

I just have no interest to stay in a small town again--hence my desire to check out the cities.

I am not very clear about what you are asking. Are you asking which cities in India will reasonably fit into your housing budget?
First we have to know what is your budget and what sort of housing is acceptable to you. All Indian cities have cheap housing options(other than mumbai). You will have to compromise in terms of basic amenities(electricity, water supply, cleanliness of locality) and commute times if you go for cheaper accomodation(usually in the outskirts of the city).

Even in Mumbai if you are willing to stay in a place like Mira road or Vasai its going to be cheap rent wise.

In absence of data a.k.a facts, No one can really help you. Affordable is a value, based of one's income or; as Romney would have; ROI.

Mumbai: (New York) Want to live in Pedder Rd ? (Upper East Side) Bandra ?(Upper West Side) JVPD ? ( West Village) Borivali ? (Queens ) Dharavi ? (Bed Stuy) Mulund (Bronx) Malad (Staten Island)

The range is vast. From 2 BR in Mumbai which can be double in rent of even UWS or Battery Park, to Borivili or Mulund ...which are like living in other boroughs of New York. I bring this up because you mentioned NYC [ $1200 for 2BR/1B in Manhattan ten years ago would be only if you lived in a rent stabilized public housing, or in the outer boroughs]

Affordable is a relative thing. If your statement said - "I have Rs 30,000/month for rent and another Rs 30,000/month for utilities and groceries and Rs 15,000 for transportation+health.... " If you went to a decent Real Estate Agent anywhere in the world; that is what they would ask - "What is your monthly budget 'maam' "

IndiaMike community cannot divine what you mean by affordable can they ? As someone who has been to India, and lived here, you know that real estate vary vastly within small (second tier) town neighborhoods, let alone the state; and forget about the whole country

Absence of clear articulation of needs and requirements, we can either 'shoot the breeze' or quickly veer off topic into crime and housing crisis in Nuevo Laredo of Goa