Hyderabad stands out as a beacon of affordability in India's real estate scene, retaining its position among the top accessible cities for homebuyers in the major metropolitan areas. According to the JLL report, projections indicate that Hyderabad's Home Purchase Affordability Index (HPAI) will maintain the commendable levels witnessed in 2022, solidifying its appeal to potential homebuyers.
While an expected decrease in affordability levels is foreseen, Hyderabad's housing market is poised for robust activity throughout 2024. This aligns with the anticipated increased affordability, reaching a three-year peak in the upcoming year, driven by potential interest rate cuts as per JLL insights.
The report forecasts a 60-80 basis point repo rate cut in 2024, likely boosting the purchasing power of homebuyers and ensuring affordability remains within reach. Despite global economic fluctuations, India's housing market has shown remarkable momentum, with sales in the initial nine months of 2023 nearly reaching 90% of the total figures from the previous year.
Siva Krishnan, Managing Director and Head of Residential Services, India at JLL, acknowledges that despite sustained residential price growth, improved economic prospects have cushioned the slight dip in affordability throughout 2023.
The report highlights that Hyderabad, along with Kolkata and Pune, is expected to maintain its status as one of the most affordable cities for home purchases.
"Kolkata, leading as the most affordable among India's top seven cities, is expected to uphold this status consistently throughout both 2023 and 2024. Pune is expected to follow suit, alongside Hyderabad, with relatively stronger HPAI scores in 2024 while remaining comparable to 2022 levels. All cities are projected to stay below their peak affordability levels seen in 2021 but significantly higher than their previous lows," the report notes.
The report suggests that strong market activity will likely continue across cities until the end of 2024, including in Hyderabad, indicating a sustained trend in their real estate sectors.
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