Recent research by Magicbricks reveals a striking 80 per cent surge in housing prices in Hyderabad over the past four years, reflecting a broader upward trend across India’s real estate sector. This dramatic increase has heightened concerns regarding housing affordability in the city. The study highlights a significant rise in the property price-to-annual family income (P/I) ratio, which has escalated from 6.6 in 2020 to 7.5 in 2024. This ratio is now notably above the internationally recommended threshold of 5, underscoring mounting affordability issues as home prices outpace income growth.
Hyderabad, despite its rapid real estate expansion, is now among the cities with high affordability pressures. In contrast, Chennai, Ahmedabad, and Kolkata offer comparatively lower P/I ratios of 5, making them more accessible for residential investments. Meanwhile, Delhi and the Mumbai Metropolitan Region (MMR) are positioned as the most expensive markets, with P/I ratios soaring to 14.3 and 10.1, respectively. The study further indicates a rise in the EMI-to-monthly income ratio from 46% in 2020 to 61% in 2024. This increase signifies an added financial strain on homebuyers, particularly in Hyderabad, MMR, and Delhi. Conversely, Ahmedabad, Chennai, and Kolkata remain relatively more affordable.
The research suggests that the real estate market might experience a slowdown in the pace of price increases. It anticipates that an uptick in residential supply could help temper the rapid growth and restore a degree of balance within the housing sector. As the market adjusts, potential homebuyers and investors will need to navigate these shifting dynamics, balancing rising costs with the potential for future stability in property prices.
