by 99Realty 
Living in the hustle and bustle of India’s megacities, the dream of owning a home comes with its own set of challenges, especially when we look into the financial aspects of homeownership. As an Indian navigating the urban landscape, it’s essential to unravel the financial struggles many families face to find a home.
Recent data sheds light on the stark reality of homeownership in megacities like Mumbai. A report by Knight Frank India unveils a striking statistic,
- In 2023, Mumbai’s Affordability Index stands at a whopping 51 per cent, surpassing the affordability threshold. “Mumbai is the only city beyond the affordability threshold of 50 per cent, a level exceeding which banks rarely underwrite a mortgage,” the report said.
- The report stated, Ahmedabad as the most affordable housing market in India with a 21 per cent affordability ratio, that means a homebuyers in the city spends 21 per cent of their monthly income towards home loan EMIs.
- Kolkata and Pune with the affordable ratio of 24 per cent each in 2023 are the next affordable real estate market.
- Hyderabad emerges out as the second-most expensive residential market after Mumbai.
- NCR’s affordability index stands at 27 per cent.
- Bengaluru is the fourth most expensive city scoring a 26 percent affordability ratio.
What it means for the Mumbaiker?
Families in Mumbai allocate more than half of their monthly income towards paying equated monthly instalments (EMIs) for home loans. Now, let’s break down what this means for the average Mumbaikar dreaming of a home. The Affordability Index essentially reflects the percentage of a family’s income that goes into home loan EMIs. In simpler terms, it represents the financial strain a family experiences to own a home in the city.
To put it into perspective, imagine a family earning a decent income but finding themselves spending more than half of it just to keep up with their home loan obligations. This leaves limited room for other crucial expenses like education, healthcare, and everyday living costs.
Why does this matter?
Well, the dream of homeownership should ideally bring a sense of security and accomplishment. However, when a significant portion of one’s income is committed to EMIs, it raises questions about the feasibility and sustainability of this dream. The struggle is not just about finding a home; it’s about maintaining a balance that ensures a comfortable and fulfilling life beyond the four walls of that home.
The rising Affordability Index is a wake-up call for policymakers, lenders, and society at large. It highlights the pressing need for solutions that make homeownership more accessible without burdening families with an overwhelming financial load.
As we delve deeper into the urban living struggles, it’s crucial to consider alternative models, policies, and financial instruments that can ease the burden on aspiring homeowners. From affordable housing initiatives to flexible loan structures, there’s a need for innovative approaches that empower families to fulfill their dream of owning a home without sacrificing their overall well-being.
In conclusion, the financial challenges of homeownership in India’s megacities are more than just numbers on a report. They represent the aspirations, sacrifices, and resilience of families striving for a better life. As we continue to unravel the complexities of urban living, let’s work towards a future where owning a home is not just a distant dream but an achievable reality for every Indian family.
For More You Can Read :
- https://www.news18.com/amp/business/real-estate-mumbai-most-expensive-city-in-india-a-family-spends-51-income-on-emis-8721762.html?utm_campaign=fullarticle&utm_medium=referral&utm_source=inshorts
- https://www.indiatoday.in/business/story/mumbai-indias-most-expensive-city-for-living-which-is-the-cheapest-one-knight-frank-report-2422993-2023-08-18
- https://zeenews.india.com/economy/indias-cities-ranked-by-cost-of-living-check-the-most-expensive-and-best-pocket-friendly-cities-to-live-in-2650418.html
