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Cost of living comparison - How does your city stack up?

  • Highlights

  • Tier I cities are expensive; tier II, III cities cheaper

  • Mumbai is better for growth and connectivity

  • Chandigarh and Vadodara offer better savings

  • Use a home loan to make a wise property investment

It is important for you to know the cost of living in various cities in India, especially if you are planning to buy a home in another city. Doing this will ensure that you are choosing a city where the cost of living suits your budget and where you can provide yourself and your family a comfortable life. This will also allow you to prepare your finances accordingly or apply for a home loan to make your real estate investment affordable.

Take a look at costs in Tier I, Tier II and Tier III cities in India to compare the cost of living in different areas taking three main considerations into account.

Mumbai, tier I:

Mumbai is a commercial hub, known for its busy, fast-paced life. It has a booming real estate market with residential areas all over the city, offering you all the modern conveniences that you seek.

* Hospital charges: The fees for treatment in the general ward of a hospital will cost you between Rs.500 to Rs.2,000. On the other hand, the price of a single doctor’s appointment falls within the range of Rs.300–Rs.3,500.

* Rent: Rent ranges from Rs.26,000-Rs.67,000 or more, depending on the size of the property and location.
* Education costs: Depending on the board you select for your children you, might have to pay school fees that go up to Rs.4 lakh per annum. But, the minimum fees will hover around the Rs.40,000 per annum mark.

Chandigarh, tier II:

Chandigarh is known as one of the country’s best-planned cities. With well-managed traffic and spacious roads, it also offers you affordable housing and education.

Additional Read: 5 Tips to give your home a Facelift

* Hospital charges: Treatment in the general ward will cost you between Rs.500 and Rs.2,500. On the other hand, a doctor’s appointment will set you back anywhere between Rs.300 and Rs.1,000.
* Rent: The city has apartments that cost Rs.15,000–Rs.25,000 per month. The rental fees depend on the size of the property that you are looking for as well as the amenities available nearby.
* Education costs: A year’s school fees will cost you between Rs.48,000 to Rs.60,000, depending on the board you select. These fees will increase if you seek to provide your child education in an international school.

Additional Read: Four Features That Can Improve Your Property Value

Buying a home for first time

Vadodara, tier III:

Vadodara is a city that is known for its rich heritage, landscapes and affordable lifestyle. Being a tier III city, living here is most affordable.

* Hospital charges: Treatment in a general ward will cost you around Rs.400–Rs.2,200, whereas a single doctor’s appointment will cost you Rs.100–Rs.1,000.
* Rent: By paying Rs.9,000 to Rs.35,000, you can find accommodation on rent in good localities in Vadodara.
* Education cost: The cost of education averages at Rs.50,000 per annum for a CBSE or ICSE school.

Knowing these basic costs will help you understand the cost of living in various parts of the country, and will help you make a wise home investment too. You can also compare these costs to your current residence and take a better decision.

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