Published On: Mon, Jul 29th, 2019

Owning a house in cities becoming unaffordable

Buying a house in Indian cities is not easy. It is becoming more difficult year-after-year. A latest finding reveals people in the country are spending more of their income to service home loan.

Among the metropolitans and cosmopolitans, Mumbai is found to be the least affordable city in the report of Reserve Bank of India.

It is learned the average house price by March 2019 was about 61.5 times an average monthly income of people.

Over the period of past four years a jump of 10 percent in HPI ratio has been found.

In March 2015 the average house price in Mumbai was 64 times the average monthly income while in March 2019 the figure has taken a steep rise to 74.4 times. This indicates that over the longterm buying a house in the financial capital would become unaffordable.

The rise in unaffordability was sharpest in Hyderabad, Chandigarh and Ahmedabad.

The RBI report also reveals the share of EMIs in monthly income of people have gone high marginally over the period of four years.

Owning a house in cities becoming unaffordable

Since March 2015 the loan-to-value ratio has increased, but since June 2018 a shrink has been seen. This could be due to more conservative nature of banks in sanctioning large loans.

Since 2015 the loan burder of Indians has also taken a steep rise by 13 percent.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

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