Ahmedabad 2nd best affordable city to buy home
AHMEDABAD: Ahmedabad is the second most affordable city to buy home among the top eight cities in India beating Mumbai and Delhi, says a survey. On the scale of affordability to rent, the city is ranked 5th showing higher rental value of the city. Ranking first, Hyderabad is the most affordable city both in terms of buying and renting a home. The other cities in the survey include Pune, Bengaluru, Kolkata and Chennai.
According to the survey, individuals who earn more than 12 lakhs per annum should opt for buying a property over renting in Ahmedabad. However, due to higher rental rates, it is the fifth place on the scale of affordability to rent. A middle income individual needs to save for at least five years to afford the down payment for the house. The city also offer good value for buyer’s money who can get around 20.18 sq.ft for every 1 lakh spent.
The average price of a 1,000 sq.ft. property in Ahmedabad can cost a buyer Rs.49.55 Lakh. On the other side, the average price of Rs.17,286 makes it less favorable to look for rent option. The NHB Residex (residential index) increased by 86 points since 2007 and recorded a 6 basis points increase over the last year. This is in sync with the increasing demand for residential properties in the city.
At income levels of as low as Rs 13 Lakh to as high as Rs 25 Lakh, a person can afford buying a house in Hyderabad. But those who earn less than Rs 8 Lakhs per annum are advised to rent.
Mumbai remains the most costly real estate market in India. It is ranked as the least affordable city both in terms of renting and buying a home. “One can afford to rent but cannot afford to buy a home in Mumbai”, reveals survey.
The survey was conducted by Hyderabad based financial advisor company ArthaYantra. The survey is based on the data collected from over 100 real estate agents across the eight cities and data from public sources such as National Housing Board (NHB) and real estate reports.
Affordability to buy home
7. Delhi NCR
Affordability to rent home
6. Delhi NCR