House affordability in India at its best in a decade: Knight Frank

Ahmedabad saw improvement in its affordability ratio with a ratio of 20%, followed by Pune and Chennai at 24% and 25%, respectively, in 2021.

Housing affordability is now at its apex in the last decade. All markets, excluding Mumbai, are recorded to be well below the threshold of affordability set at a 50% ratio, Knight Frank’s ‘Affordability Index 2021’ revealed.
The report evaluates the demand and potential of Affordable Housing in India by 2030 and talks about the requisite steps that stakeholders should take to meet this demand.

Ahmedabad saw improvement in its affordability ratio with a ratio of 20%, followed by Pune and Chennai at 24% and 25%, respectively, in 2021. The affordability ratio in NCR improved from 38% in 2020 to 28% in 2021. Similarly, the affordability ratio in Bengaluru improved from 57% in 2012 to 26% in 2021.

Despite its miraculous improvement in the affordability ratio since 2011, Mumbai was the only one that recorded a higher than threshold affordability ratio at 53%.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Over the last decade housing market has undergone a structural transformation on both demands as well as supply side. This has made the environment for home buying relatively attractive and safe.”

According to property consultant Jones Lang LaSalle India, affordability to buy homes in India’s major cities has improved this year. Between 2013 and 2021, affordability increased consistently across major Indian cities – Delhi-NCR, Mumbai, Kolkata, Chennai, Pune, Hyderabad and Bangalore.

Since banks have made home loans easier to utilize by the people when the EMI to Income is under 50%, on that account, existing income and average ticket-size metrics across seven out of eight markets make it possible for a homebuyer to easily finance their home purchase.

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time