Ahmedabad ranks the most affordable city in India; Mumbai most expensive
A report that evaluates the demand and potential of affordable housing in India by 2030
Updated: Aug 18th, 2023
Ahmedabad stands as the most affordable city in India, followed by Pune and Kolkata. The report released on Aug 16 also stated that Mumbai is the least affordable city, with a house loan EMI to average household income ratio of 55%, followed by Hyderabad (31%), and the National Capital Region (NCR) (30%).
Ahmedabad’s ratio was the lowest among the top eight cities in India, at 23%, followed by Pune’s and Kolkata’s at 26%.
Bengaluru and Chennai stand in fourth position with an EMI-to-income ratio of 28%.
What does it mean to be affordable?
While affordability is a subjective topic for every individual, the report titled ‘Rediscovering Affordability’, published by a private property consulting firm uses a different parameter. The report attempts to evaluate the affordability of Indian cities based on the equated monthly instalment (EMI) a resident in that city has to pay if they get a house with a home loan divided by the total income of an average household in that city.
Based on these parameters, the 32 cities have been placed into four equal baskets of eight cities that depict decreasing levels of affordability.
The report states that all ‘Indian urban agglomerations’, such as the NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata, and Ahmedabad, have seen affordability levels improve since 2010.
It adds that Kolkata, Ahmedabad, and Pune are the most improved markets in terms of affordability since 2010, and apartment prices here stand at just three times their average household incomes.
 |
| image source: Knight Frank research |
Shishir Baijal, the chairman and managing director at the property consulting firm that released the report, reportedly stated that the he RBI is extremely capable handling of the inflationary scenario has inspired confidence in the country's economic environment, which is also reflected in the residential demand which is at a multi-year high and office demand which has remained resilient even as office markets globally have been struggling.
For more such updates and news on the go, follow us on
