According to a recent report by Times of India, Ahmedabad and Pune are the most affordable cities to own a home Kolkata comes in third. The affordability index is based on the ratio of median house prices to median annual income. The report also compares home prices with rent, so that you can get an idea of whether it’s better to rent or buy. Housing rates in these cities have remained stable and affordable, making them ideal places to purchase property.
All housing markets, except Mumbai, are recorded to be well below the margin of comfortable affordability set up to a 50 percent ratio. The study looks at the average value of homes in a given city and compares it to the average income of residents. The study also considers factors such as property taxes, insurance rates, and utility bills to determine how affordable housing is in each city.
Ahmedabad emerged as the most affordable housing market in the country with an affordability ratio of 22% followed by Kolkata and Pune at 25% each in 2022. Despite the rise in interest rates and home prices, affordability has only marginally declined by 100 to 200 BPS in significant cities.
The severe consequential effect of an increase in home loan rates and prices on the affordability index has been eased by a rise in incomes and growth in GDP, helping the residential market maintain its momentum. Moreover, Pune, Ahmedabad & Kolkata have strong economies and business opportunities, which make them attractive to potential homeowners, leading to a larger selection of more affordable housing options.
The other underrated factors influencing a city’s housing affordability are raw material availability & cost, lead expenses & land price. Speaking of Pune, these all elements are comparatively more reasonable & easily accessible than in other cities. Thus, Pune is considered one of India’s most highly affordable cities for buying a dream home. Pune being Asia’s largest industry is overall an ultimate Pincode for your living, not just because it is affordable but also because it ensures a completely hassle-free lifestyle. An influx of IT hubs & reputed universities in Pune has attracted a large number of migrants & residents over the past few years. Additionally, Pune also helps in cherishing the ideal work-life balance you each moment aim for.
In conclusion, for homebuyers looking for affordable options in India, Pune, Ahmedabad, and Kolkata are great cities to consider. Each city has its unique advantages and drawbacks in terms of affordability, quality of life, and real estate market conditions. Pune is a popular choice for its thriving IT industry, good infrastructure, and affordable prices. Ahmedabad offers a high standard of living and a booming real estate market, while Kolkata is known for its rich cultural heritage, relatively low cost of living, and affordable housing options. Ultimately, the choice of buying a home will depend on individual preferences, needs, and priorities. Homebuyers should consider factors such as their budget, lifestyle, proximity to work, and access to amenities when making a decision. By doing so, they can find the most budget-friendly city in India that meets their needs and offers the best value for their investment.