Ahmedabad is the most affordable housing market in the country with an affordability ratio of 24% followed by Pune and Chennai at 26% each in 2020, as per property consultancy Knight Frank India.
Knight Frank's recent proprietary Affordability Index, which tracks the EMI to income ratio for an average household, has shown improvement in housing affordability over the last decade.
The decline in house prices and low home loan interest rates have helped improve housing affordability in 2020, the firm said.
Even for Mumbai, the most expensive market, the affordability ratio has improved from a high of 93% in 2010 to 61% in 2020, as per the index.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The affordability ratio across top eight cities has improved tremendously over this decade due to an increase in income level, lower interest rates and subsequently lower property prices. Government interventions around improved credit flow, lower interest rate, and cut in stamp duty rate in some markets have brought confidence among homebuyers in 2020.''
