Hyderabad Retains Position as 2nd Most Expensive Market

Hyderabad has retained its position as the second most expensive residential real estate market in India, trailing only behind Mumbai. According to the Affordability Index published by Knight Frank India, a prominent property consultancy, Hyderabad’s current EMI-to-income ratio stands at 30 percent. This ratio has remained unchanged since 2022, reflecting a stable affordability scenario over the past two years.

The Affordability Index, which tracks the proportion of a homeowner’s income dedicated to EMI payments, indicates that despite fluctuations in other markets, Hyderabad’s affordability metrics have not shifted significantly. Over the past decade, from 2010 to 2021, the city’s affordability improved slightly, but there was a notable uptick in 2022. Since then, the ratio has stabilised.

Knight Frank India’s Chairman and Managing Director noted, “Maintaining stable affordability is crucial for sustaining homebuyer demand and sales momentum, which is a significant economic driver. As income levels increase and economic growth strengthens, financial confidence among end-users is bolstered, encouraging long-term financial commitments towards asset creation. With the Reserve Bank of India forecasting a robust 7.2% GDP growth for FY 2025 and a stable interest rate environment, we anticipate that income and affordability levels will continue to support homebuyer demand into 2024.”

This stability in affordability underscores Hyderabad’s resilience in the residential real estate market. The city’s high cost of living and property prices are factors that continue to influence its standing as one of the most expensive markets in India. However, the consistent affordability ratio suggests that despite the high prices, the market remains accessible to buyers who can manage their financial commitments effectively. As Hyderabad’s residential real estate market continues to attract attention from investors and homebuyers alike, the city’s position reflects broader trends in the Indian property landscape, where high demand and economic factors interplay to shape market dynamics.