Hyderabad second most expensive housing market after Mumbai; households spend 31% income on EMIs
On average, households in Hyderabad need to spend 31% of their income on paying EMIs for housing loans.
By Sri Lakshmi Muttevi Published on 17 Aug 2023 7:37 AM GMT
Photo Credit: Prudhvi Chowdary (Instagram)
Hyderabad: Hyderabad city is the most expensive housing market in the country after Mumbai.
On average, households in Hyderabad need to spend 31% of their income on paying EMIs for housing loans.
The real estate market in Hyderabad is witnessing a golden era. Hyderabad Metropolitan Development Authority raised a whopping Rs 7000 crore in a series of auctions at Kokapet recently. These developments make the city expensive to live in.
Knight Frank India- the real estate consultant released its 'Affordability Index' for the top eight cities for the first half of the 2023 calendar year. At the top is Mumbai, followed by Hyderabad, Delhi-NCR, Bengaluru, Chennai, Pune, Kolkata, and Ahmedabad.
The affordability Index indicates the proportion of income that a household requires to fund the EMI of a housing unit in a particular city. The values are derived assuming the home loan tenure to be 20 years, loan to value ratio of 80%, a fixed housing unit area, and a median housing price in that city.
As per the affordability index, Mumbai is the most expensive housing market having an EMI-to-income ratio of 55%, followed by Hyderabad's EMI-to-income ratio of 31% and Delhi-NCR of 30%. Ahmedabad was the most affordable housing market at 23%.
According to the data, In 2010, Hyderabad residents spent 47% of their income on EMI, and the percentage decreased year by year. By 2022, the EMI-to-income ratio was 30%, and it decreased to 30%. However, the percentage is more compared to other metropolitan cities.
Knight Frank Affordability index level of 40 percent for a city implies that on average, households in that city need to spend 40 percent of their income to fund the EMI of housing loan for that unit. "An EMI/Income ratio over 50% is considered unaffordable as it is the limit beyond which banks rarely underwrite a mortgage", the Knight Frank India report said.
Hyderabad has 1 lakh unsold housing inventories:
A few days ago, a study by PropEquity, an online platform for analysis of real estate data, showed that Hyderabad has one lakh unsold house inventories, the second highest in the country after Maharashtra's Thane.
In Hyderabad, unsold housing inventories rose by five percent to 99,989 units from 95,106 units. Thane in the Mumbai Metropolitan Region had the maximum of 1.07 lakh unsold homes at the end of the June quarter, while Chennai has the lowest at nearly 20,000 units.
Recently, the Hyderabad Metropolitan Development Authority (HMDA) conducted an e-auction of open plots at Neopolis in Kokapet PhaseāII, Gandipet mandal, Rangareddy district through the MSTC site. The auction of plots was widely published to attract investors and real estate developers across the metro cities of Mumbai, Bangalore, Chennai, and Hyderabad.
