NEW DELHI: Amid the growth in actual property demand and rising costs, Chennai, Ahmedabad and Kolkata have emerged as essentially the most affordable metros for residential investments. Mumbai Metropolitan Region and Delhi are the least affordable, in keeping with a Magicbricks report. While family incomes throughout the highest 10 cities have elevated at a compounded annual progress price (CAGR) of 5.4% between 2020 and 2024, property costs have surged 9.3% (CAGR) in this era, which has weakened affordability.
Property value to annual family revenue ratio (P/I Ratio) in India has elevated from 6.6 in 2020 to 7.5 in 2024, larger than the globally accepted benchmarks of 5, the report stated.The Mumbai Metropolitan Region (14.3) and Delhi (10.1) emerged because the least affordable, whereas Chennai, Kolkata and Ahmedabad (5) are among the many most affordable cities for residential investments in 2024.
Not surprisingly, larger costs have meant higher EMI burden on dwelling consumers. The EMI-to-monthly revenue ratio in India has risen from 46% in 2020 to 61% in 2024, indicating a rising burden on dwelling consumers and reflecting affordability issues nationwide, particularly metros. The pattern is extra pronounced in MMR (116%), New Delhi (82%), Gurugram (61%) and Hyderabad (61%). In distinction, cities like Ahmedabad (41%), Chennai (41%) and Kolkata (47%) are comparatively extra affordable.
The report says the present state of affairs is “likely to hit equilibrium conditions with market trends, indicating a deceleration in price growth due to an anticipated increase in residential supply.” Affordability signifies the proportion of property value to annual family revenue. If a metropolis’s affordability is 3.7, the common property value in town is 3.7 occasions the common annual family revenue.
Property value to annual family revenue ratio (P/I Ratio) in India has elevated from 6.6 in 2020 to 7.5 in 2024, larger than the globally accepted benchmarks of 5, the report stated.The Mumbai Metropolitan Region (14.3) and Delhi (10.1) emerged because the least affordable, whereas Chennai, Kolkata and Ahmedabad (5) are among the many most affordable cities for residential investments in 2024.
Not surprisingly, larger costs have meant higher EMI burden on dwelling consumers. The EMI-to-monthly revenue ratio in India has risen from 46% in 2020 to 61% in 2024, indicating a rising burden on dwelling consumers and reflecting affordability issues nationwide, particularly metros. The pattern is extra pronounced in MMR (116%), New Delhi (82%), Gurugram (61%) and Hyderabad (61%). In distinction, cities like Ahmedabad (41%), Chennai (41%) and Kolkata (47%) are comparatively extra affordable.
The report says the present state of affairs is “likely to hit equilibrium conditions with market trends, indicating a deceleration in price growth due to an anticipated increase in residential supply.” Affordability signifies the proportion of property value to annual family revenue. If a metropolis’s affordability is 3.7, the common property value in town is 3.7 occasions the common annual family revenue.
