Ahmedabad, Pune Most Affordable; Mumbai, Hyderabad Most Expensive
MUMBAI (IANS) – Ahmedabad, Pune, and Kolkata are the country’s most affordable cities for home buyers while Mumbai continues to be the most expensive followed by Hyderabad, according to the latest Affordability Index report by real estate consultancy firm Knight Frank India.
Ahmedabad tops the list of affordable housing markets with an EMI-to-income ratio for households at 21 percent.
In simple terms, this means that an average household in Ahmedabad would need to spend 21 percent of its income to pay the EMI for a home loan.
The next most affordable housing markets are Pune and Kolkata, both of which have an EMI-to-income ratio of 24 percent.
The most expensive residential market in the country, Mumbai, saw an improvement of 2 percent in its affordability index measured at 51 percent in 2023 from 53 percent in 2022.
Hyderabad remained the second most expensive residential market in the country with its affordability index unchanged at 30 percent for both 2023 and 2022 while the city’s home prices increased by 11 percent in 2023.
The National Capital Region (NCR) recorded an improvement in its affordability to 27 percent in 2023 from 29 percent in 2022.
Bengaluru is the fourth most expensive market with an affordability index of 26 percent in 2023. The ratio of the city has improved marginally by 1 percent since 2022 and 6 percent from the pre-pandemic year of 2019.
“While marginally better than last year, home affordability across cities also significantly improved since the pre-pandemic year of 2019. And expected moderation in inflation and projected downward trend in interest rates should further improve home affordability in 2024,” the report states.
The report added that after a brief decline in affordability in 2022, the Equated Monthly Installment to income ratio for households has improved in 2023.