Improved affordability pushes home sales in India to a new peak in 2023
In 2023, the affordability of homes in India has shown a positive trend compared to the preceding year, as evidenced by the notable increase in sales figures. According to recent reports released on Thursday, the affordability index, which is the ratio of equated monthly instalments to income, witnessed improvement across the country. Sales in the top seven cities reached an unprecedented high, totalling 476,530 units, marking a substantial 31% increase from the 364,870 units recorded in 2022.
Knight Frank India's Affordability Index reveals a significant enhancement in home affordability across cities, even surpassing the levels observed in the pre-pandemic year of 2019. Notably, an EMI/Income ratio exceeding 50% is deemed unaffordable. According to Knight Frank, Mumbai stands as the sole "unaffordable" city with an affordability index of 51%. This signifies that, on average, households in Mumbai allocate 51% of their income to cover EMI for housing loans.
Contrastingly, data from Anarock indicates that the Mumbai Metropolitan Region (MMR) experienced the highest home sales in India in 2023, registering 153,870 units a substantial 40% surge compared to the 109,730 units recorded in 2022.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.