‘Low Interest Rates” In Past Few Years Have Made Housing Affordable In India’s Major Cities Except Mumbai   A housing project under construction. (Wikimedia Commons)

According to a new report, houses have become more affordable in major cities except for Mumbai over the past few years, primarily driven by a favourable interest rate regime.

“Affordability improved across India’s key markets from 2014 to 2018 led by favourable home loan rates,” said real estate consultancy firm JLL India in its recent report.

The firm launched its annual Home Purchase Affordability Index (JLL HPAI) earlier this month to signify whether a household earning an average yearly income (at an overall city level) is eligible for a housing loan to buy a 1,000 sq ft residential property in the city at the prevailing market price and home loan interest rate.

According to the Index which surveyed India’s key seven cities - Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad and Kolkata - between 2011 and 2018, only Hyderabad was found to be affordable in 2013.

However, the situation has reversed positively by 2018 and currently all the cities except Mumbai crossed the affordability threshold as per JLL HPAI.

Cities Will Remain Affordable

Samantak Das, Chief Economist and Head of Research & REIS, JLL India said, “As per JLL HPAI, affordability levels will continue to improve over the next three years for all seven cities. Over the same period, we expect a steady increase of 3-5% in property rates and 8-9% increase in average annual household income and home loan interest rates to remain range-bound."

Also Read: Bengaluru Loves It Big: Flats Across Indian Metros Turning Smaller With Time, Says Report; Not The Case In IT City

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber