Hyderabad has experienced a dramatic 80 percent increase in housing prices over the past four years, reflecting a broader upward trend across India’s real estate sector, according to a recent report by Magicbricks on housing affordability in major Indian cities.
The report highlights a notable rise in the property price-to-annual household income (P/I) ratio in India, which has escalated from 6.6 in 2020 to 7.5 in 2024. This figure significantly surpasses the globally accepted benchmark of 5, indicating increased strain on housing affordability as property prices continue to outpace income growth.
Despite Hyderabad’s robust real estate growth, the report identifies Chennai, Ahmedabad, and Kolkata as the most affordable cities for residential investments, each with a P/I ratio of 5. Conversely, the Mumbai Metropolitan Region (MMR) and Delhi are reported as the least affordable, with P/I ratios of 14.3 and 10.1, respectively.
The report also notes a concerning increase in the EMI-to-monthly income ratio, which has risen from 46 percent in 2020 to 61 percent in 2024. This increase exacerbates the financial burden on homebuyers. MMR, Delhi, and Hyderabad have been particularly affected by this trend, while Ahmedabad, Chennai, and Kolkata remain more budget-friendly options for prospective buyers.
The report suggests that the rapid rise in housing prices may soon stabilize. An anticipated increase in residential supply is expected to mitigate the current price surge, potentially bringing greater balance to the housing market.
Overall, while Hyderabad continues to see substantial price growth, the broader Indian real estate market reflects varying levels of affordability, with certain cities offering more favorable conditions for residential investment compared to others. The expected influx of new residential projects may help temper the steep price increases and restore equilibrium to the market.
