The Real Cost of Living In A Tier 1 City


Metro cities have always attracted people from all around the country to pursue their dreams and live life surrounded by great amenities, infrastructure, better standard of living and so on. It is perhaps this increase in demand that has led to soaring prices of everything from housing, transportation and even healthcare.

Do you find the modern charm of metro cities intriguing? Does it make you want to relocate someday in the future? Well, we have a question for you. While you may have gone over and above on your research about housing and amenities, are you aware of the financial liabilities that come with moving to a metropolitan city like Mumbai, Hyderabad or Delhi, among others?

Most people jump at the opportunity of moving to a big city with complete lack of awareness about the real costs of living. This can eventually deplete their home finances and could also take a toll on their personal finance.

Yet, plenty of people take the financial risk and move to big cities anyway. It is a huge gamble to make such a significant life decision when you are financially unprepared. The key here is to do proper groundwork and be aware of the expenses beforehand so that you can be financially adept to afford the cost of living in the long run.

Let us take you through some essential costs that you must consider before making the big move.

Standard of Living

It is essential to run a check on basic utility costs like water, electricity, gas, internet connection or even groceries for that matter before you finalize your decision to move to a metro city. You do not want to leave out any basic costs and be taken aback by your monthly expenses later.

Also factor in your lifestyle costs and account for how much you may spend if you go to the movies, social activities, restaurants etc depending upon your way of living post relocation.


Compared to small towns, the cost of housing and rentals in big cities are soaring high. If you are used to living in big spaces with huge outdoor areas like a backyard or verandah, city homes might take you by surprise. Irrespective of if you are looking to buy or rent a house, rooms in big cities like Mumbai are fairly small and cost a fortune.

The cost of rental housing in other tier 1 cities like Delhi, Chennai, Bengaluru, Hyderabad. etc. are relatively affordable as compared to Mumbai. If you are planning to buy a house, be sure to account for all extra charges like maintenance and registration fee, stamp duty, parking charges etc. After all, owning a home in a metropolitan city is a costly affair.

Transportation and Commuting

If your apartment is at a distance from your workplace or if you simply want to explore the city, having a means of transportation is integral. Every metro city has public transportation like buses, trains and even intercity transport to facilitate easy commuting. The cost of traveling by using public transport will vary based on your location but it is essential to account for these charges when creating a financial plan.

Better still, if you prefer to invest in a two or four-wheeler, it is important to check on diesel and petrol prices, vehicle insurance charges, service center charges, etc. to be able to bear the cost of transportation.


This is one of the most important financial aspects that people usually forget to consider before moving to a big city. The term healthcare essentially includes medical facilities, consultation charges, cost of medicines, average hospital charges. etc. that you must find out before moving to a new city.

For example, the cost of a certain medical treatment in Hyderabad may differ from the price of the same treatment in Mumbai. This is due to the varying healthcare sectors of the two cities. If you have health insurance you must also check with your insurance provider if it covers services in the metro city you are moving to.

Moving to a tier 1 city can be a great step for your future provided you are aware of all its impending financial obligations. The safest investments afterall are those that reap benefits and result in secure wealth creation opportunities in the future.

If you are worried about making the wrong financial choices while relocating to a big city, reach out to Dezerv- an investing and portfolio management platform and let our finance experts help you shape the financially secure future of your dreams.