18 AUG, 2023
Adhya Moona
Photo: UNSPLASH/BRIJESH ANAND
A new report has been released by Knight Frank India, a leading property consultant, where they have ranked the most expensive Indian cities to live in.
Photo: UNSPLASH/SID SAXENA
This index measures living affordability based on the EMIs a resident in that city has to pay if they get a house with a home loan, divided by total income of an average household in that city.
Photo: UNSPLASH/SUBHADIP KANJILAL
The EMI/Income ratio over 50% is considered unaffordable because it is the limit beyond which banks rarely underwrite a mortgage.
Photo: UNSPLASH/SARANG PANDE
The most expensive city to live in in India is Mumbai. Mumbai has an expensive housing market. In Mumbai, the home loan EMI to income ratio is 55%.
Photo: UNSPLASH/SATYAJEET MAZUMDAR
So, in Mumbai, an average household has to pay more than half of its income on home loan EMIs if they have to get a house on loan.
Photo: UNSPLASH/SHUBHAM RATH
Hyderabad is the second most expensive city to live in. Here, the EMI-to-income ratio is 31%.
Photo:UNSPLASH/VISHNU PAVAN
Delhi and the National Capital Region ranks third where one has to dedicate 30% of their income to home loan EMIs.
Photo: UNSPLASH/ABHISHEK KOLI
Chennai, the capital of Tamil Nadu, is the fourth most expensive city in India. In Chennai, the EMI-to-income ratio is of 28%.
Photo: UNSPLASH/MOHNISH LANDGE
Pune, another city in the state of Maharashtra is considered an expensive city to live in. Here, an average household has to pay 26% of their income on home loan EMIs.
Photo: UNSPLASH/SAURAV MAHTO
Kolkata, in the state of West Bengal, shares the fifth position on the list of the most expensive cities in India along with Pune.
According to this index, the most affordable city to live in in India is Ahmedabad, Gujarat. Households here have to pay 23% of its income for home loan EMIs.
Photo: UNSPLASH/SATYAJEET MAZUMDAR