In 2023, elevated home loan rates and property costs drove up Hyderabad's real estate prices. Mumbai claimed the title of the least affordable market in Knight Frank's 2023 Affordability Index, with average home loan EMIs consuming 55% of household income. On the other hand, Ahmedabad, Gujarat, offers the most budget-friendly real estate, with a home loan EMI to income ratio of just 23%.
In 2023, the home loan EMI to income ratio within Hyderabad's real estate stands at 31%, showcasing an enhancement from the affordability figures recorded in 2019. Before the pandemic struck, the ratio of home loan EMI to income was 34. This places Hyderabad's real estate market as the second least affordable due to the elevated ratio of house loans to income. In comparison, the ratio is 30% in the National Capital Region (NCR), while both Chennai and Bengaluru exhibit a more favorable ratio at just 28%.
Top Pick for Non-Resident Indians (NRIs)
Hyderabad's real estate market has emerged as the favored choice for NRIs, even though it ranks as India's second most expensive. A substantial portion of NRIs from the US, Canada, the Gulf, Europe, and beyond are inclined toward housing in Hyderabad.
Despite the fact that investments in stocks and mutual funds tend to offer higher returns than those in the real estate sector, NRIs show a stronger inclination towards purchasing properties in prestigious cities like Hyderabad, Bengaluru, and Delhi-NCR. This preference can be attributed, in part, to their experiences during the COVID-19 pandemic. Many among them, particularly those formerly employed in the Gulf states, were compelled to return to India due to job losses stemming from the outbreak.
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