Hyderabad: The city of pearls has climbed the ranks of India’s priciest residential markets, landing the second spot in Knight Frank India’s Affordability Index. Despite an 11% price jump in 2023, Hyderabad’s affordability remained unchanged at 30%, meaning a household dedicates 30% of their income to monthly mortgage payments.
Affordability Across India: The national picture presents a mixed bag. Ahmedabad retained its crown as the most affordable city, with a comfortable 21% ratio. Kolkata and Pune followed closely at 24% each. On the other end, Mumbai stands alone, exceeding the 50% affordability threshold, making it a tough market for banks to lend in.
Hope for the Future: Despite the price hike in Hyderabad, experts like Shishir Baijal, Chairman of Knight Frank India, remain optimistic. He predicts stable GDP growth and moderating inflation in 2024-25, which could improve affordability. Additionally, a potential interest rate cut by the RBI could further boost the housing sector by making mortgages more accessible.
