This City Beats Bengaluru, Pune To Become 2nd Most Expensive Housing Market In India; Mumbai At #1
According to a latest finding, Mumbai is the most expensive housing market in India during the first half of 2022 or H12022, followed by Hyderabad, according to an estate agency Knight Frank’s report.
As per this report, the top 8 most expensive housing markets in the country in terms of EMI to income ratio includes NCR, Bengaluru and Kolkata, besides Mumbai and Hyderabad in the first and second positions.
The least expensive/most affordable housing market in India, ranking number 8th on the international firm Knight Frank’s report is Ahmedabad.
More information on the metrics of India’s housing market can be found in the report, as mentioned further in this article.
EMI to Income Ratio of Different Indian Housing Markets
As mentioned above, Mumbai is the most expensive housing market in India and its EMI to household income ratio in H12022 stands at 56%, compared to 53% in 2021.
For Hyderabad, this ratio stands at 31% in the first half of 2022, compared to 29% in 2021.
For the remaining cities in Knight Frank’s list, the EMI to household income ratio for an average household in the Jan-Jun 2022 period looks like this:
NCR: 30% in H12022; 28% in 2021.Bengaluru: 28%Kolkata: 27%Chennai: 26%Pune: 26%Ahmedabad: 22%
The levels of affordability and income have properly been taken into account while drafting the report for H1 2022, keeping all variables except the interest rate constant, stated Knight Frank.
“On an average, affordability has decreased by 200-300 basis points across the major markets. However, despite the hike in the rates, markets remain largely affordable. This, coupled with the positive change in sentiments towards home ownership, we expect demand to remain unhindered with the momentum backed by the latent demand in the market continuing,” said Shishir Baijal, the director and managing director of Knight Frank India.