In the first six months of 2024 (H1 2024), Hyderabad remained the second most expensive residential market in the country after Mumbai, revealed the Affordability Index Report released by Knight Frank India on Wednesday.
The Knight Frank Affordability Index indicates the proportion of income that a household requires to fund the monthly instalment (EMI) of a housing unit in a particular city. So, a Knight Frank Affordability Index level of 40% for a city implies that on an average, households in that city need to spend 40% of their income to fund the EMI of housing loan for that unit.
Affordability index was conducted in eight cities of India where Mumbai stood first with an EMI to income ratio of 50% followed by Hyderabad at 30%, National Capital Region at 28%, Bangalore at 26%, Chennai at 25%, Pune at 24%, Kolkata at 24% and Ahmedabad at 21%.
“Stable affordability is essential to sustaining a home buyer’s demand and sales momentum, which, in turn, acts as a key economic driver for the country. As income levels rise and economic growth strengthens, end-users’ financial confidence is significantly bolstered, encouraging them to make longer-term financial commitments toward asset creation. Given the RBI’s healthy 7.2% GDP growth estimate for FY 2025 and a stable interest rate scenario, income and affordability levels are expected to continue to support home buyers’ demand in 2024,” said Chairman and Managing Director of Knight Frank India Shishir Baijal.
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