INDIAN DESTINATION Regarding housing affordability, India’s real estate property in Pune is at its decadent peak. If you’re looking to buy a house in Pune, you should know the affordability ratio. Pune and Chennai, with affordability ratios of 24 percent and 25 percent, will overtake Ahmedabad in 2021 as the nation’s most cheap housing markets.
Mumbai had the highest affordability ratio, at 53%, although it has seen the most improvement since 2011. Bengaluru’s affordability ratio increased from 57% in 2012 to 26% in 2021, whereas NCR’s affordability ratio increased from 38% in 2020 to 28% in 2021.
Buyers’ capacity to purchase a home within a specific city is assessed using the Affordability Index, which considers changes in property prices, interest rates on home mortgages, and median family income. Because banks only approve home loans with an EMI to revenue ratio of less than 50%, homebuyers in seven out of eight marketplaces may now easily finance their purchase.
Household incomes have been disrupted due to the epidemic since early 2020, although home affordability has continued to rise. In the year 2020, Ahmedabad’s affordability ratio was 23%. In contrast, in 2010, the percentage was a staggering 46%.
Home loan interest
In another report, it has been said. The recent fall in home loan interest rates to below 6.5 percent has played a major role in the recent improvement in housing affordability. It has undoubtedly taken a pandemic for the market to come around and boost consumer confidence, which is currently seen across the country.
It’s a great moment to buy a home because of the favorable regulatory environment, the pricing, and the low-interest rates.
EMI Program
The Index represents the monthly income to pay for an apartment in a city’s EMI program. An affordability index stage of 40 percent for a city means that, on average, the households in that city are willing to spend 40 percent of their income on the EMI for that particular unit’s housing mortgage. An EMI/Income ratio of more than 50% is considered expensive since banks rarely underwrite a mortgage over this percentage.
Until 2021, Ahmedabad will continue to be India’s most affordable flats in Pune offering homes at a lower cost than those in other well-known cities. As reported by TOI, Ahmedabad has the highest yearly Affordability Index 2021 housing affordability ratio with a 20 percent affordability ratio.
Final Words
The Index considers the EMI (equated monthly payment) to income ratio for an average household when calculating affordability. If you are looking to buy a house in Pune you should know the ratio. After Ahmedabad, the affordability ratios in Pune, Chennai, Kolkata, and Bengaluru were 24%, 25%, and 26% in 2021, respectively.
