With apartment costs that are only three times the average household income, Kolkata and Pune stand out as examples of improved affordability.
According to the recently announced Knight Frank Affordability Index for 2023, Mumbai, noted for its bustling streets, diversified culture, and economic activity, is the most expensive city to live in.
Ahemdabad is recognized as the most cheap city in India.
As cities strive to achieve a balance between economic expansion and the well-being of its residents, the issue of housing affordability has taken center stage.
The demand for a competent labor to power economic engines frequently collides with an insufficient supply of quality homes, resulting in property prices that significantly outstrip income growth.
The government’s emphasis on affordable housing, as illustrated by the flagship ‘Housing for All by 2022’ program, has been critical in lowering residential unit prices and increasing affordability.
Knight Frank pioneered the Global Affordability Monitor to better understand the global affordability dilemma, rating 32 cities worldwide based on three essential factors.
Mumbai is ranked second among these cities in terms of affordability, making it the least affordable city in India.
The Knight Frank India Affordability Benchmark backs up Mumbai’s terrible position. The financial burden of homeownership in Mumbai is the greatest of any major Indian city, with typical house costs over seven times the average household income.
India, which boasts one of the world’s fastest-growing economies, has seen extraordinary urbanization driven by employment and commercial opportunities.
This expansion has drawn a new wave of people seeking upward mobility and a higher quality of life. Acquiring a home represents stability, achievement, and social standing, making residential real estate a valuable asset.
This zeal for home ownership has skyrocketed prices. However, the market dynamics evolved in the early 2010s. Spiraling prices, along with greater unit sizes, resulted in a decrease in demand, leaving developers with unsold inventory.
Other cities with better affordability include Kolkata, Ahmedabad, and Pune, where apartment costs are only three times the average household income.
The Knight Frank Affordability Benchmark, established at 4.5 times the average yearly household income, continues to be a target for places such as Mumbai, NCR, and Hyderabad.
