Knight Frank India has recently released the ‘Affordability Index’ for the top eight cities during the first six months of 2023 calendar year. This index evaluates the proportion of monthly income that an average household must allocate for Equated Monthly Instalments (EMIs) to cover housing costs within each city.
The index shows that because home loan interest rates have gone up, it’s become harder for people to afford homes in all markets this year.
Notably, Ahmedabad stands as the most economically viable housing market, boasting a modest 23 percent ratio. Following closely, Pune and Kolkata exhibit a 26 percent ratio each, while Bengaluru and Chennai mirror each other at 28 percent. Meanwhile, the Delhi-NCR region and Hyderabad are noted at 30 percent and 31 percent ratios, respectively. On the other end of the spectrum, Mumbai showcases the highest EMI-to-income ratio at 55 percent, denoting the lowest affordability among these cities.
