The Hindu Business Line
Housing market affordable in 7 major cities except Mumbai: JLL India
Stable prices and lower interest rates on home loans have made housing market affordable in all major cities except Mumbai, according to property consultant JLL India.
“Hyderabad was the most affordable housing market in 2018, followed by Kolkata and Pune,” said the consultant in its annual Home Purchase Affordability Index (JLL HPAI) launched on Wednesday.
The index analyses affordability across key seven cities (Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad and Kolkata) for the period 2011 to 2018, after factoring in home loan interest rates, average household income and the price of a 1,000 sq ft apartment.
The index signifies whether a household, earning an average annual 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. “It is interesting to note that only Hyderabad out of the seven cities covered as a part of our study was affordable in 2013 whereas the situation flipped positively by 2018. In 2018, all the cities except Mumbai crossed the affordability threshold as per JLL HPAI,” said the consultant.
JLL India’s CEO and Country Head Ramesh Nair said the company aims to share a holistic perspective which could act as a feeder into strategic decision making for developers and policy makers.