Ahmedabad is the cheapest market to buy a house in the country, Mumbai is the most expensive

India Ahmedabad (Ahmedabad) houses in this case, when it has become the largest market for the purchase of affordable Mumbai (Mumbai) are the most expensive. This is stated in a report by Knight Frank India. The company has announced the Affordability Index 2020. As such, Ahmedabad is the cheapest market for homes in the country. In terms of housing, the economic ratio was 24 per cent in 2020, up from 24 per cent a decade ago in 2010. So, Pune and Chennai are in second and third place with 26 per cent in cheap ratio respectively.

Knight and Frank India said the ratio of more than 50 per cent makes it difficult to get loans from banks and housing finance companies and buying houses is beyond the capacity of the pocket. The income ratio from the monthly installment (EMI) is taken into account under the affordable index. There has been a significant improvement over the last decade in terms of housing being cheaper. According to the report, the fall in house prices and the multi-decade low interest rates on home loans have made housing more affordable in 2020.

Mumbai is the most expensive

"Mumbai is the most expensive market with an economic ratio of 61 per cent, while Ahmedabad, Chennai and Pune are relatively cheap," Knight & Frank said. The economic ratio was 93 percent in 2010 and 61 percent in 2020. The index takes into account the value of the property, the interest rate on the home loan, the family income. These things determine the ability to buy a home.

The economic ratio in the national capital has improved to 38 per cent from 53 per cent in 2010. In Bengaluru, it was 28 per cent in 2020, compared to 48 per cent a decade ago. According to the report, the ratio in Pune and Chennai has risen to 26 per cent from 39 per cent and 51 per cent in 2010, respectively. Hyderabad's ratio stood at 31 per cent, up from 47 in 2010. In Kolkata, it improved to 30 per cent in 2020 from 45 per cent a decade ago.

Shishir Baijal, chairman and managing director, Knight & Frank India, said the economic ratios in the country's eight largest cities have improved significantly in 2020 compared to the previous decade. The reason for this is the improvement in income level, lower interest rates and lower property prices.