Mumbai has become the most expensive city to live in India, as per property consultant firm Knight Frank India
Knight Frank India has released the Knight Frank Affordability Index, which indicates the proportion of income that a household requires, to fund the equated monthly installment (EMI) of a housing unit in a particular city
As per the index, on average, Indian households need to spend 40% of their income to fund the EMI of housing loans for their desired residential unit. This ratio changes from city to city depending on property rates
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Mumbai, the business capital of India has emerged as the most expensive housing market in the country. Here, the home loan EMI to income ratio is 55%, meaning that an average household has to pay more than half of its income on home loan EMIs. Areas like Juhu, Malabar and Cumballa Hills have the highest property rates
Hyderabad is the second most expensive Indian city with an EMI-to-income ratio of 31%. Residential properties in areas like Jubilee Hills and Banjara Hills are the most expensive
Delhi-NRC region comes at the third spot where 30% of the income gets spent on securing a residential property. This percentage changes with respect to different zones and categories. For instance, areas such as Panchsheel Park and New Friends Colony are in Category A with the highest property rates
Karnataka's Bengaluru and Tamil Nadu's Chennai, both are in the fourth spot. Their EMI to income-ratio is 28%. Next, is Pune in Maharashtra where a person spends around 26% of their income on home loan EMIs. This ratio remains the same for buying properties in Kolkata
Gujarat’s Ahmedabad has the most affordable properties in India. Here, an average household needs to pay 23% of its income for home loan EMIs
Over the last year, EMI-to-income ratios across cities have gone up around 1-2 percentage points, after the RBI hiked its key lending rate by 250 basis points since last year. Due to this, the sale of houses priced below Rs 50 lakh has gone down