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Hyd Second-most Expensive Home Mkt In ’22: Study | Hyderabad News
HYDERABAD: Hyderabad has emerged as the second most expensive residential realty market after Mumbai thanks to rising property prices and increasing home loan rates triggered by a 225 BPS increase in repo rates, according to Knight Frank’s Affordability Index 2022.
As per the index, while the EMI of an average household in Mumbai accounted for 53% of income in 2022, in Hyderabad it stood at 30% followed by NCR at 29% and 27% each in Chennai and Bengaluru.
In this regard, Ahmedabad was the most affordable at 22%, followed by Kolkata and Pune at 25% each. According to Knight Frank, affordability levels worsened across all the top eight markets for the first time in 10 years this year after hitting the most affordable levels in 2021.
“Affordability levels had improved even during the pandemic impacted years of 2020 and 2021 as residential price growth was subdued and the government cut policy rates to increase liquidity,” it said.
Yashwin Bangera, senior vice president-research, Knight Frank India, said that city’s affordability index level of 30% signifies the proportion of household income that an average household has to allocate toward EMI for a housing unit. “This level has worsened from 28% in 2021 due to the increase in home prices and due to the rise in home loan rates that are now equal to those existing in pre-pandemic 2019,” he said.
However, he said affordability in 2022 was still much better than the 34% level in 2019 in Hyderabad as the economic environment and income growth have been strong.
As per the index, while the EMI of an average household in Mumbai accounted for 53% of income in 2022, in Hyderabad it stood at 30% followed by NCR at 29% and 27% each in Chennai and Bengaluru.
In this regard, Ahmedabad was the most affordable at 22%, followed by Kolkata and Pune at 25% each. According to Knight Frank, affordability levels worsened across all the top eight markets for the first time in 10 years this year after hitting the most affordable levels in 2021.
“Affordability levels had improved even during the pandemic impacted years of 2020 and 2021 as residential price growth was subdued and the government cut policy rates to increase liquidity,” it said.
Yashwin Bangera, senior vice president-research, Knight Frank India, said that city’s affordability index level of 30% signifies the proportion of household income that an average household has to allocate toward EMI for a housing unit. “This level has worsened from 28% in 2021 due to the increase in home prices and due to the rise in home loan rates that are now equal to those existing in pre-pandemic 2019,” he said.
However, he said affordability in 2022 was still much better than the 34% level in 2019 in Hyderabad as the economic environment and income growth have been strong.
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