Mumbai, Delhi Emerge As Least Affordable Housing Cities In India, Says Survey

The study, titled ‘Housing Affordability in Major Indian Cities’, was organised by Magicbricks and looked into how feasible housing remains in the big cities across the country

Meanwhile, Chennai, Ahmedabad, and Kolkata were the most affordable cities for residential investment in 2024 with a reading of 5

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Mumbai Metropolitan Area and Delhi emerged as the least affordable cities for investment in terms of housing in a latest survey conducted on major Indian cities. The study, titled ‘Housing Affordability in Major Indian Cities’, was organised by Magicbricks and looked into how feasible housing remains in the big cities across the country.

The survey found that household income in the top 10 cities of the country rose at a compound annual growth rate (CAGR) of 5.4 per cent between 2020 and 2024, reported Business Standard. Meanwhile, property prices during the period under review inched higher by 9.3 per cent. This has in turn impacted the purchasing power of the people. 

Property Price To Household Income Ratio

The report noted that the property price to annual household income ratio (P/I ratio) in the country also climbed from 6.6 in 2020 to 7.5 in 2024. This was also higher than globally accepted benchmark of 5.

In terms of affordable properties, MMR and Delhi emerged as the least affordable regions with ratios of 14.3 and 10.1 respectively. Meanwhile, Chennai, Ahmedabad, and Kolkata were the most affordable cities for residential investment in 2024 with a reading of 5.

The EMI-to-monthly income ratio in the country also soared to 61 per cent in 2024, in comparison to 46 per cent reported in 2020. This remained indicative of the piling burden for home buyers and pointed out concerns about the economic condition of the Indian people, specifically those residing in metros.

Meanwhile, another report by Magicbricks highlighted that average home prices in Gurugram climbed by 76 per cent in just two years. The PropIndex report found that average house prices in the city increased by 15.5 per cent sequentially and hit Rs 14,650 per square foot during the July-September period in 2024. The PropWorth tool found that average residential rate in Dwarka Expressway hit Rs 14,800 per square foot, while the Golf Course Extension area saw average home prices touch Rs 17,000 per square foot.