HYDERABAD: In its annual proprietary study, the Affordability Index 2021, Knight Frank has stated that Indian markets are at their decadal best in terms of housing affordability. As per the study, the affordability ratio in Hyderabad has improved from 53 per cent in 2012 to 29 per cent in 2021.
All markets, except Mumbai, were recorded to be well below the threshold of affordability set at 50 per cent ratio. Ahmedabad emerged as the most affordable housing market in the country with an affordability ratio of 20 per cent.
Knight Frank’s proprietary Affordability Index, which tracks the equated monthly installment to total income ratio for an average household, has shown a meaningful improvement in affordability since 2010.
Despite the pandemic period since early 2020, which created disruptions in household incomes, housing affordability has further improved.
A decline in house prices and multi-decade low home loan interest rates have helped improve housing affordability in 2021.
Knight Frank India CMD Shishir Baijal said: “Over the last decade the housing market has undergone a structural transformation on both the demand, as well as, the supply side. This has made the environment for home buying relatively attractive and safe. However, the key catalyst remained the same — affordability, which has witnessed gradual improvement since 2015.”