Hyderabad ranks as second most expensive residential market: Knight Frank India

The city's affordability ratio, which compares the EMI to income, stood at 30 per cent in the first half of 2024, maintaining the same level as in 2023.

Hyderabad: Hyderabad is the second most expensive residential market in India, according to the latest Affordability Index report by Knight Frank India. The city’s affordability ratio, which compares the EMI to income, stood at 30 per cent in the first half of 2024, maintaining the same level as in 2023.

Ahmedabad remains the most affordable housing market among the top eight cities, with a ratio of 21 per cent, followed by Pune and Kolkata at 24 per cent each. Mumbai remains higher than the affordability threshold at 51 per cent.

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Over the years, the affordability index for Hyderabad has shown significant changes. In 2010, the ratio was at 47 per cent, which dropped to 34 per cent in 2019, further decreasing to 31 per cent in 2020, and reaching its lowest at 28 per cent in 2021. The subsequent years saw a slight increase, with the ratio stabilizing at 30 per cent in 2022, 2023, and the first half of 2024.

Shishir Baijal, Chairman and Managing Director, Knight Frank India pointed out that stable affordability was essential to sustaining homebuyer demand and sales momentum, which, in turn, acted as a key economic driver for the country.

As income levels rise and economic growth strengthens, end-users’ financial confidence is significantly bolstered, encouraging them to make longer-term financial commitments toward asset creation.

“Given the RBI’s healthy 7.2.per cent GDP growth estimate for FY 2025 and a stable interest rate scenario, income and affordability levels are expected to continue to support homebuyer demand in 2024,” he said.

The report highlights that the weighted average price per square foot in Hyderabad was Rs 2,728 in 2010, rising to Rs 4,500 in 2019. Prices steadily increased to Rs 5,681 by the first half of 2024, marking a 26 per cent rise since 2019 and a 5 per cent increase compared to the first half of 2023.

 

Affordability Index of Leading Eight Cities in India

– Hyderabad:

2010: 47%

2019: 34%

2020: 31%

2021: 28%

2022: 30%

2023: 30%

H1 2024: 30%

– Mumbai

2010: 93%

2019: 67%

2020: 61%

2021: 52%

2022: 53%

2023: 51%

H1 2024: 51%

– NCR

2010: 53%

2019: 34%

2020: 38%

2021: 28%

2022: 29%

2023: 27%

H1 2024: 28%

– Bengaluru

2010: 48%

2019: 32%

2020: 28%

2021: 26%

2022: 27%

2023: 26%

H1 2024: 26%

– Chennai

2010: 51%

2019: 30%

2020: 26%

2021: 24%

2022: 27%

2023: 25%

H1 2024: 25%

– Pune

2010: 39%

2019: 29%

2020: 26%

2021: 24%

2022: 25%

2023: 24%

H1 2024: 24%

– Kolkata

2010: 45%

2019: 32%

2020: 30%

2021: 25%

2022: 25%

2023: 24%

H1 2024: 24%

– Ahmedabad

2010: 46%

2019: 25%

2020: 24%

2021: 20%

2022: 22%

2023: 21%

H1 2024: 21%