Global Real Estate consultancy Knight Frank’s latest report ‘Affordability Index’ puts a stamp of approval to what developers and many experts have been saying about the Real Estate market of Ahmedabad with the city being declared the ‘Most Affordable’ market in the country.
Knight Frank on Wednesday released its report ‘Affordability Index-Rediscovering Affordability’, for which their time and tested method of Global Affordability Monitor was used.
They applied three key critical parameters:
* House Price to household income ratio
* Rent as a proportion of Income and
* Real House price growth compared to real income growth
Based on these important parameters, Ahmedabad achieved an affordability ratio of 20% and became the most affordable city, followed by Pune with 24% and Chennai 26%. Mumbai, with an affordability ratio of 53%, is the most expensive market.
The affordability level of 20% means that an average household in the city needs to spend 20% of their total income to fund the EMI of the housing unit. This way, Ahmedabad is the cheapest in India.
The report points out, “The reducing prices, ticket sizes and the focus on affordable housing have improved home affordability across the country to a large extent.”
Knight Frank has also praised the Central Government’s unwavering focus on affordable housing with measures such as ‘Credit Linked Subsidy Scheme’.
