Hyderabad 2nd most expensive housing market in India

Hyderabad: Hyderabad emerged as the second most expensive market in India with an EMI to income ratio of 31 per cent during January-June 2023 (H1), up by one per cent 30 per cent in 2022, reveals Knight Frank India in its proprietary Affordability Index. Mumbai is the most expensive city with a ratio of 55 per cent.

As per the assessment of Affordability Index, Ahmedabad is the most affordable housing market amongst the top eight cities, with a ratio of 23 per cent followed by Pune and Kolkata at 26 per cent each. The report further cited that higher home loan rates have reduced affordability across all markets so far in 2023.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: “The RBI’s extremely capable handling of the inflationary scenario has inspired confidence in the country’s economic environment. This 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.

However, the 250 bps increase in policy rates has reduced affordability across markets by 2.5 per cent on an average. And, while the market has remained strong thus far, further interest rate increases could put pressure on homebuyer ability and sentiments.” The report stated that, while overall demand has remained consistently high, its underlying components have changed significantly with the mid and premium segments (Rs50 lakhs – Rs1crore and above Rs10 crore, respectively) consistently outperforming the overall market.