Knight Frank Affordability Index: Ahmedabad, Pune, and Chennai most affordable housing markets in the country
According to Knight Frank India’s analysis of the affordability index for the first quarter of 2022, all markets have seen a fall in affordability as a result of the current increase in domestic mortgage rates due to the ninety BPS increase in REPO fees.
According to the affordability index’s mid-year review, Ahmedabad is the most affordable housing market among the top 8 cities, with a ratio of 22 percent, followed by Pune and Chennai at 26 ch in the first half of the calendar year 2022.
For the duration of the pandemic and as the Reserve Bank of India (RBI) cut REPO costs to decadal lows, Knight Frank’s proprietary Affordability Index, which tracks the EMI (Equated Monthly Instalment) to earnings ratio for a median household, saw consistent growth from 2010 to 2021 across the eight major towns in India. The combined ninety bps fee rises with the help of the RBI, however, have lowered domestic buy affordability on a median basis with the aid of two ross markets and increased EMI burden with the aid of 6.97 percent.
Mumbai continues to be the most affluent residential market in the United States. The house purchase affordability index increased from 93 percent in 2010 to 66 percent in 2019. The affordability index increased in line with the pandemic’s early-2020 emergence, reaching 61 percent in 2020 and then again at 53 percent in 2021. The city’s affordability index is at 56 percent as of H1 2022.
Hyderabad is the second most affluent residential market in the United States. The house purchase affordability index increased from 47% in 2010 to 33% in 2019. The affordability index similarly increased to 31 percent in 2020 and once more to 29 percent in 2021 as a result of the pandemic’s early 2020 emergence. The city’s affordability index is now at 31 percent as of H1 2022.
NCR has an H1 2022 ranking of 0.33 in terms of the most upscale residential market in the United States. The affordability index for the city has varied from year to year. The affordability index for purchasing a home increased from 53% in 2010 to 34% in 2019. The affordability index rolled down to 38 percent in 2020 when the pandemic appeared in early 2020, although it increased to 28 percent in 2021. The metropolis’s affordability index now sits at 30% in H1 2022.
Bengaluru, which ranks as India’s fourth most affluent city, follows NCR in terms of the country’s upscale housing markets. The house purchase affordability index increased from 48% in 2010 to 32% in 2019. The affordability index also increased to 28 percent in 2020 and once more to 26 percent in 2021 as a result of the pandemic’s early 2020 emergence. The city’s affordability index is now at 28 percent as of H1 2022.
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