Mumbai is the least affordable city among the top cities in India, according to the Knight Frank report. The report measures the affordability of a city by the EMI to income ratio, which shows how much of the average income goes towards paying the home loan EMIs. The lower the ratio, the more affordable the city is. The report says that for all the top cities, except Mumbai, the ratio is below 50 per cent, which is considered to be the comfortable level of affordability. However, for Mumbai, the ratio is 93 per cent, which means that almost all of the average income is spent on paying the EMIs.

Source : Knight Frank India

Explanation : The Knight Frank Affordability Index shows how much of their income a family needs to pay the monthly loan (EMI) of a house in a specific city. For example, a Knight Frank Affordability index of 40% for a city means that on average, families in that city have to spend 40% of their income to pay the EMI of the loan for that house. A ratio of EMI/Income above 50% is considered unaffordable because it is the limit above which banks usually do not give a loan.

Ahmedabad is one of the most affordable cities to buy a home in India in 2023 because of its low property prices, high income levels, easy loan availability, and high rental yield.

The average property price in Ahmedabad is Rs 3,800 per sq ft, which is much lower than the national average of Rs 5,800 per sq ft. The average annual household income in Ahmedabad is Rs 13.03 lakh, which is higher than the national average of Rs 10.93 lakh. The average home loan interest rate in Ahmedabad is 8.5%, which is lower than the national average of 9%. The average rental yield in Ahmedabad is 3.6%, which is higher than the national average of 2.9%. These factors make Ahmedabad an attractive destination for home buyers who are looking for affordability and returns.

Some of the popular areas for real estate investment in Ahmedabad are Bopal, Gota, South Bopal, Chandkheda, and Vastrapur. These areas offer good connectivity, infrastructure, amenities, and social infrastructure. Some of the upcoming projects that will boost the real estate market in Ahmedabad are the Ahmedabad Metro Rail Project (AMRP), the Sabarmati Riverfront Development Project (SRDP), the Dholera Smart City Project (DSCP), and the Gujarat International Finance Tec-City (GIFT).

Pune is one of the most affordable cities to buy a home in India in 2023 because of its moderate property prices, high income levels, easy loan availability, and high rental yield.

The average property price in Pune is Rs 5,200 per sq ft, which is lower than the national average of Rs 5,800 per sq ft. The average annual household income in Pune is Rs 12.47 lakh, which is higher than the national average of Rs 10.93 lakh. The average home loan interest rate in Pune is 8.5%, which is lower than the national average of 9%. The average rental yield in Pune is 3.6%, which is higher than the national average of 2.9%. These factors make Pune an attractive destination for home buyers who are looking for affordability and returns.

Some of the popular areas for real estate investment in Pune are Hinjewadi, Wagholi, Baner, Kharadi, and Undri. These areas offer good connectivity, infrastructure, amenities, and social infrastructure. Some of the upcoming projects that will boost the real estate market in Pune are the Pune Metro Rail Project (PMRP), the Pune Ring Road Project (PRRP), the Pune Airport Expansion Project (PAEP), and the Pune Smart City Project (PSCP).

Kolkata is one of the most affordable cities to buy a home in India in 2023 because of its low property prices, low income levels, easy loan availability, and moderate rental yield.

The average property price in Kolkata is Rs 4,100 per sq ft, which is lower than the national average of Rs 5,800 per sq ft. The average annual household income in Kolkata is Rs 9.32 lakh, which is lower than the national average of Rs 10.93 lakh. The average home loan interest rate in Kolkata is 8.5%, which is lower than the national average of 9%. The average rental yield in Kolkata is 3.1%, which is higher than the national average of 2.9%. These factors make Kolkata an attractive destination for home buyers who are looking for low cost and moderate returns.

Some of the popular areas for real estate investment in Kolkata are Rajarhat, New Town, Salt Lake, Tollygunge, and Howrah. These areas offer good connectivity, infrastructure, amenities, and social infrastructure. Some of the upcoming projects that will boost the real estate market in Kolkata are the Kolkata Metro Rail Project (KMRP), the Kolkata East-West Metro Corridor Project (KEWMCP), the Kolkata International Financial City Project (KIFCP), and the Kolkata Smart City Project (KSCP).

Hyderabad is one of the most affordable cities to buy a home in India in 2023 because of its stable property prices, moderate income levels, easy loan availability, and high rental yield.

The average property price in Hyderabad is Rs 4,800 per sq ft, which is lower than the national average of Rs 5,800 per sq ft. The average annual household income in Hyderabad is Rs 11.04 lakh, which is higher than the national average of Rs 10.93 lakh. The average home loan interest rate in Hyderabad is 8.5%, which is lower than the national average of 9%. The average rental yield in Hyderabad is 3.7%, which is higher than the national average of 2.9%. These factors make Hyderabad an attractive destination for home buyers who are looking for stability and returns.

Some of the popular areas for real estate investment in Hyderabad are Kukatpally, Gachibowli, Miyapur, Manikonda, and Nallagandla. These areas offer good connectivity, infrastructure, amenities, and social infrastructure. Some of the upcoming projects that will boost the real estate market in Hyderabad are the Hyderabad Metro Rail Project (HMRP), the Hyderabad Outer Ring Road Project (HORRP), the Hyderabad Pharma City Project (HPCP), and the Hyderabad Aerospace Park Project (HAPP).

Chennai is one of the most affordable cities to buy a home in India in 2023 because of its moderate property prices, moderate income levels, easy loan availability, and moderate rental yield.

The average property price in Chennai is Rs 5,000 per sq ft, which is lower than the national average of Rs 5,800 per sq ft. The average annual household income in Chennai is Rs 10.71 lakh, which is lower than the national average of Rs 10.93 lakh. The average home loan interest rate in Chennai is 8.5%, which is lower than the national average of 9%. The average rental yield in Chennai is 3%, which is higher than the national average of 2.9%. These factors make Chennai an attractive destination for home buyers who are looking for affordability and returns.

Some of the popular areas for real estate investment in Chennai are OMR, Porur, Pallavaram, Ambattur, and Velachery. These areas offer good connectivity, infrastructure, amenities, and social infrastructure. Some of the upcoming projects that will boost the real estate market in Chennai are the Chennai Metro Rail Project (CMRP), the Chennai Peripheral Ring Road Project (CPRRP), the Chennai-Bangalore Industrial Corridor Project (CBICP), and the Chennai Smart City Project (CSCP).