Property prices across the country have skyrocketed in the last 10 years, especially after the pandemic. Land prices are constantly on the rise in metros as well as small cities. However, you will be surprised to know that amid the surge in demand and rising prices in the real estate sector, Chennai, Ahmedabad and Kolkata have emerged as the most affordable metros for residential investment.
According to a Magicbricks report, Mumbai Metropolitan Area and Delhi are the least affordable. While household income in the top 10 cities of the country grew at a compound annual growth rate (CAGR) of 5.4 per cent between 2020 and 2024, property prices have increased by 9.3 per cent (CAGR) during this period, thereby affecting the purchasing power of the people.
The report said that the property price to annual household income ratio (P/I ratio) in India has increased from 6.6 in 2020 to 7.5 in 2024, which is higher than the globally accepted benchmark of 5.
Mumbai Metropolitan Area (14.3) and Delhi (10.1) have emerged as the least affordable cities in terms of property, while Chennai, Kolkata and Ahmedabad (5) are among the most affordable cities for residential investment in 2024.
The EMI-to-monthly income ratio in India has increased from 46 per cent in 2020 to 61 per cent in 2024, reflecting the increasing burden on home buyers and concerns about the economic condition of people across the country, especially in metros.
This trend is more pronounced in Mumbai Metropolitan Area (116%), New Delhi (82%), Gurugram (61%) and Hyderabad (61%). In contrast, cities like Ahmedabad (41%), Chennai (41%) and Kolkata (47%) are relatively more affordable.
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