The country has progressed by some extent in the affordability to buy homes as families people have made more money through multiple means, the jobs of people have become stable, and mortgage and housing rates have preferably come down in all major cities.
This report and in-depth analysis were conducted by a known property consultant JLL India. These conclusions are a part of the Home Purchase Affordability Index 2021 launched by the consultant on Monday. Its main focus was around those earning an average annual income and whether or not they are eligible for a housing loan in the city. The index discussed Delhi-NCR, Mumbai, Kolkata, Chennai, Pune, Hyderabad, and Bengaluru and compared the affordabilities in 2013 and 2021, which showed how buying a home and becoming eligible for a housing loan became feasible this year when compared to 2013.
The affordability index for most cities remained unchanged this year compared to 2020, except Hyderabad, which made a significant growth this year. The index can be understood by considering a value of 100 means that a household has exactly enough income to qualify for the loan. Conversely, a value less than 100 implies that an average home does not have enough income to be eligible for a housing loan if their value is more than 100, making them suitable to qualify and still have money with them.
Through the above calculation, Mumbai remains the most expensive/complex city in terms of affording a property, and Kolkata is the most affordable city in terms of owning a property. The index shows a possibility of Kolkata improving this year. However, the report has highlighted multiple times how Hyderabad's index has increased to 203 from 193. Pune and Delhi are set to improve in their index by the end of this year. Mumbai's index will finally touch 100, the lowest among all cities but slightly better than their 2020 index at 94.