As the demand for spacious living persists in India, the quest for affordable real estate has become increasingly daunting. The 2023 Affordability Index by Knight Frank India provides crucial insights into the cities where property remains attainable for the average buyer. While metropolitan giants like Mumbai continue to dominate the market, the index reveals that many buyers are still seeking balance between affordability and quality of life.
Mumbai retains its status as the priciest residential market, with an affordability threshold exceeding 50 percent. This stark figure implies that prospective homeowners are devoting a substantial portion of their income to mortgages, creating a significant barrier for many. Conversely, Hyderabad, despite an 11 percent rise in home prices, maintains a 30 percent affordability ratio, indicating a resilient market. The National Capital Region (NCR) shows a slight improvement, with its index rising to 27 percent, buoyed by developments like the Dwarka Expressway that are energising property sales in areas such as Greater Noida. Bengaluru, while also witnessing a modest improvement, records an affordability index of 26 percent, reflecting ongoing demand amidst economic shifts.
In stark contrast, Ahmedabad emerges as the most affordable major city in India, boasting a commendable affordability ratio of 21 percent. Households here allocate an average of just 21 percent of their income to Equated Monthly Instalments (EMIs), a testament to effective urban planning and strategic development that has mitigated congestion and ensured sustainable growth. Pune, with a 24 percent affordability ratio, also attracts attention as a vibrant market, particularly appealing to migrant workers and salaried professionals, despite the challenges of rising home loan rates. Kolkata and Chennai, with similar affordability ratios, are experiencing renewed interest in residential properties, driven by favourable policies and robust economic sectors.
