India's Most and Least Affordable Cities to Buy a Home in 2024
Chennai, Ahmedabad, and Kolkata are the most affordable metro cities for residential investments in 2024, while Mumbai and Delhi are the least affordable.
India Real EstateAffordable CitiesProperty PricesHomebuyersMagicbricksReal Estate MumbaiSep 07, 2024
The report highlights that the Mumbai Metropolitan Area and Delhi are the least affordable cities for property buyers. Between 2020 and 2024, household incomes in the top 10 cities of India grew at a compound annual growth rate (CAGR) of 5.4 per cent. However, property prices rose faster, with a CAGR of 9.3 per cent.
The property price to annual household income ratio (P/I ratio) in India has increased from 6.6 in 2020 to 7.5 in 2024. This is significantly higher than the global benchmark of 5, indicating a growing gap between incomes and property prices. Mumbai has the highest P/I ratio of 14.3, followed by Delhi at 10.1, making these cities the most expensive for homebuyers.
On the other hand, Chennai, Kolkata, and Ahmedabad have a P/I ratio of 5, making them more affordable options for those looking to invest in residential property. The report also reveals that the burden of monthly EMIs on homebuyers has increased. The EMI-to-monthly income ratio in India rose from 46 per cent in 2020 to 61 per cent in 2024.
This means a larger portion of people's income is going towards home loan repayments. The EMI burden is particularly high in the Mumbai Metropolitan Area (116 per cent), Delhi (82 per cent), Gurugram (61 per cent), and Hyderabad (61 per cent). In contrast, cities like Ahmedabad (41 per cent), Chennai (41 per cent), and Kolkata (47 per cent) are much more affordable in terms of EMI payments.
About Magicbricks Magicbricks is a leading online real estate platform in India, providing a comprehensive range of services for homebuyers, sellers, and real estate developers.
Information The Indian real estate market has experienced significant growth in recent years, driven by increasing demand for housing and commercial spaces. However, the market has also faced challenges, including rising property prices and affordability concerns.
Magicbricks is a subsidiary of the Times Group, one of India's largest media conglomerates. The company was founded in 2006 and has since become one of the most popular online real estate platforms in India, with over 1 million listings and 10 million monthly visitors.
Frequently Asked Questions
What are the most affordable cities to buy a home in India in 2024?
Chennai, Ahmedabad, and Kolkata are the most affordable metro cities for residential investments in 2024.
What is the property price to annual household income ratio (P/I ratio) in India?
The P/I ratio in India has increased from 6.6 in 2020 to 7.5 in 2024, which is higher than the global benchmark of 5.
Which cities have the highest EMI burden on homebuyers?
The Mumbai Metropolitan Area (116 per cent), Delhi (82 per cent), Gurugram (61 per cent), and Hyderabad (61 per cent) have the highest EMI burden on homebuyers.
What is the compound annual growth rate (CAGR) of household incomes in the top 10 cities of India between 2020 and 2024?
The CAGR of household incomes in the top 10 cities of India between 2020 and 2024 is 5.4 per cent.
What is the CAGR of property prices in India between 2020 and 2024?
The CAGR of property prices in India between 2020 and 2024 is 9.3 per cent.
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