By: FPJ Web Desk | August 18, 2023
Mumbai has been identified as the priciest real estate market in a recent study published by Knight Frank India. The affordability index provided by Knight Frank evaluates the affordability of living by considering the EMIs equated monthly instalments an urban dweller would need to cover for a home loan, divided by the total earnings of an average city household.
In the case of Mumbai, the ratio of home loan EMI to income stands at a significant 55%, indicating that an average household would need to allocate over half of its earnings towards home loan EMIs in order to get a house on loan.
Hyderabad holds the position of the second costliest city with an EMI-to-income ratio of 31%.
In the third position is the Delhi- National Capital Region which requires individuals to allocate 30% of their income towards home loan EMIs.
Chennai and Bengaluru follow closely in the ranking at No. 4, with an EMI-to-income ratio of 28%.
Taking the fifth place is Pune where the typical household must devote 26% of its earnings to home loan EMIs. Kolkata shares the same ratio.
Lastly, Ahmedabad emerges as the most affordable Indian city to reside in as one is required to pay 23% of an average household's income for home loan EMIs.
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