Home Affordability Surges in Key Indian Property Markets, Ahmedabad Leads the Pack
In 2024, India's key property markets saw a significant improvement in home affordability, with Bengaluru being the only exception. Ahmedabad, Pune, and Kolkata are now the most affordable markets, supported by robust economic growth and stable interest r
Home AffordabilityProperty MarketsAhmedabadPuneBengaluruReal Estate PuneDec 30, 2024
The steady increase in income levels has made homeownership more accessible for individuals and families across the country.
According to a detailed analysis by Knight Frank India, homebuyers' affordability, measured by the Equated Monthly Instalment (EMI) to income ratio, has improved in seven out of eight cities.
The notable exception is Bengaluru, which has seen a slight dip in affordability.
Ahmedabad, Pune, and Kolkata are now the most affordable markets in India.
Ahmedabad leads the pack with an affordability ratio of 20%, followed by Pune at 22%, and Kolkata at 24%.
These cities have benefited from various policy incentives, infrastructure development, and industrial growth, making them attractive real estate destinations.
Chairperson and Managing Director of Knight Frank India, Mr.
Shishir Baijal, emphasized the crucial role of affordability in sustaining demand and driving sales, which, in turn, supports economic growth.
In Ahmedabad, the city’s affordable housing market has been bolstered by government policies, improved infrastructure, and a thriving industrial sector.
This has positioned Ahmedabad as a leading real estate destination, attracting both first-time buyers and investors.
Despite being the most expensive market in the country, Mumbai has also seen an improvement in affordability, with the ratio improving by 17% since 2019.
This is a significant achievement, given the city's high property prices.
However, Bengaluru's affordability has dropped slightly, with households now expected to allocate 27% of their income towards home purchases.
Despite this, the residential market in Bengaluru remains resilient, with housing demand growing by 23% annually since 2020.
The stability in interest rates and strong economic growth are expected to continue supporting homebuyer demand in 2025.
This positive trend is likely to encourage more individuals to enter the housing market, further driving demand and supporting the overall real estate sector.
Disclaimer This information has been collected through secondary research, and the Indian Brand Equity Foundation (IBEF) is not responsible for any errors in the same.
InformationKnight Frank India is a leading real estate consultancy firm that provides comprehensive market analysis and advisory services.
The company’s expertise in the Indian real estate sector makes its reports and insights highly valuable for both industry professionals and consumers.
Frequently Asked Questions
Which city in India has seen the most significant improvement in home affordability in 2024?
Ahmedabad has seen the most significant improvement in home affordability, with an affordability ratio of 20%.
How has Mumbai's home affordability improved since 2019?
Mumbai's home affordability has improved by 17% since 2019, despite being the most expensive market in the country.
What factors have contributed to the improved home affordability in Ahmedabad?
The improved home affordability in Ahmedabad has been supported by policy incentives, infrastructure development, and industrial growth.
Why has Bengaluru's home affordability dropped slightly in 2024?
Bengaluru's home affordability has dropped slightly, with households now expected to allocate 27% of their income towards home purchases, despite a resilient residential market.
What is expected to support homebuyer demand in 2025?
Stable interest rates and strong economic growth are expected to continue supporting homebuyer demand in 2025.
Related News Articles
UAE's Economic Boom: CBUAE Predicts 6.2% Real GDP Growth by 2025
The UAE's real estate, tourism, and transportation sectors are expected to drive economic growth, with the CBUAE projecting a 6.2% increase in real GDP by 2025.
Delhi-NCR Office Market Ranks 5th Most Expensive in Asia Pacific Region
Delhi-NCR ranks as the 5th most expensive office market in the APAC region with a prime office rent of INR 340/sqft/month.
Residential Real Estate Market Outlook: Cautious Optimism Prevails
Despite a cautious stance, 63% of Q2 respondents expect higher residential property prices, indicating a broadly optimistic outlook for the real estate market.
JP Morgan India Leases Massive 5.6 Lakh Sq Ft Office Space in Bengaluru for 7+ Years
Bengaluru's real estate market is on fire! JP Morgan India has leased a whopping 5.6 lakh sq ft office space in Embassy TechVillage for over 7 years. But is this a sign of a booming market or a bubble waiting to burst?
Virgo Daily Horoscope for September 14, 2024: Navigating a Temporary Decline in Assets
Finance and Property: Ganesha predicts a slight decline in profits from real estate. Be cautious in real estate deals and keep an eye on expenses to improve financial outlook.
Tamil Nadu Panchayat Ward Member's Husband Arrested for Sexual Harassment
A 38-year-old real estate broker, husband of a panchayat ward member, was arrested for allegedly harassing a widow and seeking sexual favours from her in Guduvanchery.