Hyderabad has become the second most expensive residential market in India, surpassing Delhi NCR, according to Knight Frank India’s Affordability Index. This index measures how much of their income households need to allocate for monthly housing loan EMIs. If this ratio exceeds 50%, banks usually do not provide mortgages due to unaffordability.
Mumbai remains the most unaffordable city, but it has shown a slight improvement in affordability, decreasing from 53% in 2022 to 51% in 2023. Mumbai had the highest sales in 2023, with approximately 153,870 units sold, followed closely by Pune with around 86,680 units sold. Despite its high cost, Hyderabad experienced a significant increase in sales, reaching 61,715 units in 2023, a 30% increase from the previous year, while maintaining an unchanged affordability index of 30%.
Delhi NCR saw an improvement in affordability to 27% in 2023, but the sales numbers only increased by 3% to 65,625 units. Bengaluru and Chennai also showed improvements in affordability, with both cities experiencing substantial increases in sales of 29% and 34%, respectively.
Overall, the collective sales of residential units in the seven major cities reached a ten-year high of 476,530 units in 2023, surpassing previous records. The demand for luxury housing has skyrocketed, with a fivefold increase in new luxury supply compared to 2018. In 2023, there were 58 properties priced above Rs 40 crore sold across these cities, a significant increase from the 13 such sales recorded in 2022.
Mumbai had the highest number of high-end sales, with multiple units selling above Rs 40 crore, including a few exceeding Rs 200 crore. Delhi-NCR also had significant sales in this price range, with at least four deals above Rs 40 crore, two each in Gurgaon and New Delhi. Hyderabad witnessed one residential deal priced at Rs 40 crore in Jubilee Hills.
