One of India’s most pricey real estate markets-Bengaluru

According to a report, Bengaluru is the fourth most expensive residential market in the nation. The town’s affordability index now stands at 28 percentage points in the 0.33 sector of CY22, down from 26 percentage points in 2021.

According to a recent report from Knight Frank India, the affordability index for Q3 2022 indicates a reduction in affordability across all markets as a result of the present increase in median mortgage costs brought on by the 50 basis point (bps) increase in repo pricing. According to the report, the cumulative 0.95 percent increase in the average domestic mortgage rate would have an impact on homeowners’ affordability and purchase decisions.

Ahmedabad continued to have the highest percentage of affordable housing among the top 8 cities, with a ratio of 22%, followed by Pune at 26% and Chennai at 27%, according to the affordability index’s nine-month evaluation (Jan-Sep 2022).

“Home affordability has been worse in 2022 as a result of the rise in median mortgage prices. Since the price cycle altered, affordability has decreased through cent-per-square-foot variables in all cities. Although the desire to own a home remains strong, homebuyers will largely make necessary accommodations by considering less expensive housing options rather than delaying their purchases because expectations of further price increases will discourage deferment, according to Shishir Baijal, Chairman and Managing Director of Knight Frank India.

Knight Frank’s in-house Affordability Index measures the median household’s EMI (Equated Monthly Instalment) to wages ratio.

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