Hello and welcome to your daily dose of news! In a recent report by Knight Frank India, a prominent property consultant, it’s been revealed that Ahmedabad is the most pocket-friendly city to call home in India. The report also highlights Delhi-NCR as the sixth most affordable city. What’s the measure? It’s all about the affordability index, which looks at how much of a person’s income goes into paying for their house. Let’s break down the details for you.
Ahmedabad Affordability Index Explained:
Imagine you have a pie, and a slice of it represents your income. The report looks at how much of that slice you need to use for your home’s EMI (like a monthly house payment). If this “home slice” is around 40% for a city, it means folks there need to spend 40% of their pie on house EMIs. Ahmedabad takes the lead with a low 23% slice, followed by Pune and Kolkata at 26%. Then comes Hyderabad with 31%, and Delhi-NCR at 30%. Hold on, because Mumbai is on the expensive side, gobbling up a big 55% slice!
Delhi-NCR’s Hidden Gems:
Rajat Goyal, the head honcho at MRG Group, spills the beans. He says Delhi-NCR isn’t just easy on the wallet for homes; it also brings a bunch of other goodies like top-notch education and healthcare. NCR (that’s Noida, Greater Noida, and Gurugram) is shining bright because of all these perks. No wonder it’s raining new housing projects here!
Costs Creeping Up:
Picture this: last year, these cities became even pricier. The EMI-to-income ratios climbed by 1-2 percentage points. The culprit? The Reserve Bank of India raised its main lending rate by 250 basis points, basically making EMIs heavier.
Buying Drama for Different Budgets:
Shishir Baijal, the big boss at Knight Frank India, spills some home-buying secrets. People looking for homes under Rs 50 lakh often rely on home loans more. They’re like super-sensitive to interest rate hikes. What’s interesting is that mid-range homes are now selling better than the affordable ones. And those fancy premium homes? They’re catching up too!
That’s a wrap on this eye-opening report! Ahmedabad is a winner for the budget-savvy, and Delhi-NCR is showing its charms in more ways than one. Just remember, home prices and EMIs are like a seesaw – sometimes up, sometimes down. Keep an eye on the news to know what’s coming up next. Stay tuned for more updates, only on HUNDI TIMES.
Frequently Asked Questions (FAQs) About the Affordable Indian Cities Report
1. What is the basis of the ranking of affordable cities in India?
- The ranking is based on the affordability index, which measures the proportion of an individual’s income used for EMI payments on housing loans.
2. Which city is ranked as the most affordable to live in according to the report?
- Ahmedabad takes the lead as the most affordable city, with an affordability index of 23%.
3. What are the next most affordable cities after Ahmedabad?
- Pune and Kolkata are tied at the second spot, both having an affordability index of 26%.
4. How does Delhi-NCR fare in terms of affordability?
- Delhi-NCR ranks as the sixth most affordable city, with an affordability index of 30%.
5. Which city is considered the least affordable among those mentioned in the report?
- Mumbai is the least affordable city, with an affordability index of 55%.
6. Why is Delhi-NCR considered a good option for affordable living?
- Delhi-NCR offers quality accommodation along with excellent facilities like education and healthcare, making it a suitable and cost-effective choice.
7. What has caused the increase in EMI-to-income ratios across cities?
- The increase is attributed to the Reserve Bank of India raising its key lending rate by 250 basis points, leading to higher EMI payments.
8. How do sales trends vary across different segments of the housing market?
- Sales in the mid-segment of housing are now surpassing those in the affordable segment, while the premium segment is also experiencing a boost in sales.
9. Why are homebuyers looking for houses under Rs 50 lakh more sensitive to rate hikes?
- Homebuyers in this budget range rely heavily on home loans and are more affected by interest rate increases.
10. What are the key takeaways from this report?
- Ahmedabad is the most affordable city, Delhi-NCR offers a great blend of affordability and amenities, Mumbai remains the most expensive city, and changes in interest rates impact housing affordability and sales.