Houses turn costly across 7 cities: JLL

New Delhi, Dec. 5: Affordability level to buy housing properties is estimated to have declined this year across seven major cities due to rise in mortgage and property rates, property consultant JLL India said on Monday.

Affordability index in all seven cities, except Mumbai, is in a comfortable zone. Kolkata, Pune and Hyderabad are expected to remain the most affordable residential markets.

The consultant released its ‘Home Purchase Affordability Index’ (HPAI) that signifies whether a household earning an average annual income (at an overall city level) is eligible for a housing loan on a property in the city, at the prevailing market price. It has derived this index through a combination of variables which include home loan interest rates, average household income and price of the residential apartment.

The HPAI is the ratio of the average household income to the eligible household income. Eligible household income is defined as the minimum income that a household should earn in order to qualify for a home loan on

Kolkata is the most affordable residential market among the top seven cities, followed by Pune and Hyderabad, Bengaluru, Chennai, Delhi and Mumbai.

a 1,000 square feet apartment at the prevailing market price. A value of 100 means that a household has exac-tly enough income to qualify for the loan. A value less than 100 implies that an average household does not have enough income to qualify for a housing loan. A value of more than 100 implies that an average household has more than enough income to qualify for the home loan.

According to the report, Kolkata, with an estimated value of 193, is the most affordable residential market among the top seven cities, followed by Pune (183) and Hyderabad (174), Bengaluru (168), Chennai (162), Delhi (125) and Mumbai (92). Last year, Kolkata had a HPAI value of 212, Hyderabad (196), Pune (195), Bengaluru 185, Chennai 181, NCR 140 and Mumbai 100.