Hyderabad: Housing prices in Hyderabad have surged by 80 percent over the past four years, reflecting a broader upward trend in India’s property market, according to a recent analysis of housing affordability in major Indian cities.
The report shows a notable increase in the property price-to-annual household income (P/I) ratio in India, which rose from 6.6 in 2020 to 7.5 in 2024—well above the globally accepted benchmark of 5. This indicates that housing costs are growing much faster than household incomes, significantly impacting affordability for many families.
While Hyderabad's real estate market remains strong, the analysis highlights Chennai, Ahmedabad, and Kolkata as the most affordable cities for residential investments, each with a P/I ratio of 5. In contrast, the Mumbai Metropolitan Region (MMR) and Delhi are the least affordable, with P/I ratios of 14.3 and 10.1, respectively.
Additionally, the report points to a rise in the EMI-to-monthly income ratio, which grew from 46 percent in 2020 to 61 percent in 2024, further straining homebuyers financially. MMR, Delhi, and Hyderabad are most affected by this trend, while cities like Ahmedabad, Chennai, and Kolkata continue to offer more affordable options.
Experts attribute the surge in housing prices to several factors, including increased demand, limited supply, and higher construction costs. In Hyderabad, the growth of the IT sector and expansion of commercial areas have driven up demand for housing.
Despite the current challenges, the report suggests the market could stabilize soon. An anticipated increase in residential supply is expected to slow down rapid price growth, helping to balance the housing sector. Developers are likely to launch new projects in response to high demand, which may help alleviate price pressures. Government initiatives focused on affordable housing and relaxed lending norms could also enhance housing affordability in the future.
Real estate experts recommend that prospective homebuyers carefully assess their financial situation and consider market conditions before purchasing, given the current state of India's real estate market.
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