India (Commonwealth Union)_ According to a report by the Knight Frank consultancy firm, the continuous demand to migrate to India’s Silicon Valley has made Bengaluru India’s fourth most expensive real estate market, with an annual increase of 2 percent in its position at 28 percent.
According to the report’s city-wise statistics, Mumbai’s housing market remains the costliest in the country. Mumbai is the only city whose index of affordability is increasing at a pace of 4%, from 53% in 2021 to 57% in the third quarter of this year.
Mumbai and Hyderabad are recognized as having some of the most expensive housing markets in India. However, the latest index showed that Bengaluru’s affordable housing market has grown more expensive as a result of the 50-bps increase in the repo rate in September by the Reserve Bank of India. According to Knight Frank’s Affordability Index, a cumulative 0.95 percent increase in the median house loan rate has affected homebuyers’ purchasing ability and purchasing decisions.
The Affordability Index measures the ratio of EMI (equated monthly payment) to family income. According to Shishir Baijal, chairman and managing director at Knight Frank India, “Home affordability, due to the rise in median loan rates, has worsened in 2022. On September 30, the RBI increased the repo rate by 50 bps, taking the cumulative hike to 190 bps in 2022.”
Moreover, Ahmedabad, Chennai, and Pune remain the most economical housing markets in India. Since 2019, Ahmedabad has remained the most affordable of India’s eight major cities. The house purchase affordability index improved from 46 percent in 2010 to 25 percent in 2019. According to the survey, Ahmedabad scored 22% on the index, followed by Pune in Maharashtra, which scored 26%, and Chennai, which scored 27% on the index.
