New Delhi: Before Alexander, the Great made an attempt to conquer it, India was a magical kingdom that had captured the attention of the entire globe. The nation is home to countless varieties of flora and fauna, as well as rivers and mountains. The nation is currently divided into 29 states, each with its own lifestyle, culture, and advantages.
We have an article prepared for you based on the report published by the renowned property adviser Knight Frank India. The report is about the most expensive and cheapest cities in India. (Also Read: A Night Of Pure Luxury: This Luxurious Hotel Costs Rs 12.15 Lakh Per Night, Prime Minister Narendra Modi Also Stayed There)
Cheapest City In India
According to a recent study by renowned property adviser Knight Frank India, Ahmedabad is the cheapest place to live in India. The EMIs a resident of a city must pay if they purchase a home with a home loan are divided by the average family income in that city to determine the affordability index, which was provided by Knight Frank. (Also Read: Heaven On Earth: World's Most Expensive Mansion Has 1788 Rooms And 257 Bathrooms, Net Value Rs 2,550 Crore)
What Is Affordability Index Level?
The Knight Frank Affordability Index shows how much income a household needs to bring in each month to pay the EMI on a housing unit in a specific city. Therefore, a city with a Knight Frank Affordability Index level of 40 percent means that households there must spend, on average, 40 percent of their income to pay the monthly installments on a home loan for that unit.
As the threshold beyond which banks rarely underwrite a mortgage, an EMI/Income ratio of more than 50 percent is seen as unaffordable.
Most Expensive City In India
Mumbai has the most costly housing market. A typical household must spend more than half of its salary on mortgage payments in Mumbai because the city's home loan EMI to income ratio is a staggering 55 percent. The second most costly city is Hyderabad, with an EMI-to-income ratio of 31 percent.
The third-placed region is the Delhi National Capital Region, where home loan EMIs cost 30 percent of your salary.
With an EMI to income ratio of 28 percent, Chennai and Bengaluru in Tamil Nadu tie for second place. Next, an ordinary household in Pune, Maharashtra, must pay home loan EMIs equal to 26 percent of their income. In West Bengal, Kolkata has the same rate.
Finally, Ahmedabad in Gujarat, where an average household must pay 23 percent of their income for home loan EMIs, is the most affordable Indian city to live in. This index has taken into account a fixed dwelling size across cities, a loan period of 20 years, and an 80 percent loan-to-value ratio.
Living in these cities has only gotten more expensive over the past year. Because the Reserve Bank of India increased its benchmark lending rate by 250 basis points since last year, these EMI-to-income ratios have increased by about 1-2 percentage points across cities. Since then, this has resulted in an average 14.4 percent rise in the EMI load across all cities.
