Chennai, Ahmedabad, and Kolkata Emerge as Affordability Leaders in Housing Market

Chennai, Ahmedabad, and Kolkata rank as the most affordable cities for housing investments according to Magicbricks' report. The property price to annual household income ratio indicates increasing affordability challenges, especially in Mumbai and Delhi. The rising EMI-to-monthly income ratio highlights the growing financial burden on homebuyers in major Indian cities.

Chennai, Ahmedabad, and Kolkata have been identified as the most affordable cities for housing investments, according to a report from Magicbricks. The property price to annual household income ratio (P/I Ratio) has climbed from 6.6 in 2020 to 7.5 in 2024, indicating growing affordability concerns.

The recent findings show that Chennai, Ahmedabad, and Kolkata hold a P/I Ratio of 5, making them more accessible for residential investments in 2024. Conversely, Mumbai and Delhi have emerged as the least affordable, with ratios at 14.3 and 10.1, respectively.

Magicbricks CEO Sudhir Pai noted that the period between the latter half of 2021 and 2022 saw the peak of residential investments' affordability due to low interest rates and rising household incomes. However, the significant and rapid increase in demand has led to a surge in residential prices, posing new challenges for affordable housing.

Additionally, the EMI-to-monthly income ratio in India has increased from 46 percent in 2020 to 61 percent in 2024, reflecting the mounting financial strain on homebuyers. This trend is particularly evident in MMR, New Delhi, Gurugram, and Hyderabad, while cities like Ahmedabad, Chennai, and Kolkata remain relatively affordable.

(With inputs from agencies.)