Sleepless city comes with a price tag

Mumbai — the city of dreams, the city with an undying spirit, hasty busybodies, an endearing hospitality and a home to offer to anyone who visits her. You read this written across countless books, delivered as dialogues in every classic Bollywood film and at least once off the mouth of its many visitors and numerous residents.

There is hardly any doubt that Mumbai is the Maximum City is all senses. From being the financial capital of the country to playing home to the glamour industry, the city is one of a kind. It is, interestingly, one of a kind in yet another aspect.

According to Mercer’s 23rd annual Cost of Living Survey, Mumbai (holding the 57th rank) is India’s most expensive city for expatriates, inching closer to break into the top 50 most expensive cities in the world. Compared to last year, the city has moved 25 notes up from being ranked 82.

Fun fact: Mumbai (57) is ranked higher and more expensive than cities like Auckland (61), Dallas and Paris (both settling on a tie at 62), Canberra (71), Seattle (76) and Vienna (78) of the world. But, what is it that makes the city of dreams the city of gold?

The survey efficiently enlists factors that contributed in pushing the city up the ladder. From the instability of housing markets and inflation for goods and services, to foreign exchange fluctuations, all contribute to the overall cost of doing business in today’s global environment. For several expats living in the city, the housing markets burn a hole in their pockets.

Michaela Strobel, a German expat living in the city, runs the Harkat Studios in Aram Nagar with her husband (an Indian). Over a phone conversation, she laughs nervously as she confirms the rent issues. “The rent for both our house and the studio makes up most of our expense — and I can assure you that it is a lot,” she says. Michaela first visited the city six years ago as a part of her educational programme, but only began living here three and a half years ago. “When people first visit India, they tend to avoid the metropolitan cities and go to rural, quaint areas. But Mumbai quickly caught my interest and I decided to stick on mostly because work developed so beautifully for me,” she recalls.

Jeff Goldberg, owner of an acting and direction studio in Mumbai says that while the rent for his home and studio are indeed soaring, his son’s school fees, his vehicles, and general entertainment make up the most of his expense. The director says that the city has essentially grown more expensive in the last three years. But even so, a lot of aspects of the city are still affordable. “I can’t deny how expensive Mumbai is, but there is still a lot that is affordable about it. Healthcare, education and food is all really inexpensive,” says Jeff, who first came to the city in 2006 on an assignment and was smitten from the word go.

Nick Tyson, an American investor based in the city, wasn’t one to fall in love with Mumbai instantly. He recalls, “I first thought the traffic was terrible and infrastructure very poor; I still think that though,” he laughs.

All three of them also point out that the nightlife in Mumbai will cost more or less the same as back home. “Prices like drinks, food and alcohol in bars costs almost the same as back in Paris,” shrugs Jeff, who spent his entire 20s in France.  

But even as Mumbai is evidently not a pauper’s paradise, there is nowhere else they would rather be. “The city is a mix of cultures and a mix of people who always have a plan. And they act on it — they are survivors. I think that is what gives the city its undeniable spirit,” concludes Michaela.