Housing prices in Hyderabad surge 80% in 4 years, highest in India; Chennai most affordable, Mumbai least

Over the last four years, housing prices in India have risen sharply by 46 per cent, with cities like Hyderabad and Noida witnessing the highest increases at 78.6 per cent and 69 per cent, respectively. This significant surge in prices, particularly after the COVID-19 pandemic, has severely impacted housing affordability, creating financial challenges for potential home buyers.Hyderabad and Noida Lead the Surge in PricesThe post-pandemic period has brought a rapid escalation in real estate prices, especially in Hyderabad and Noida, where property values have nearly doubled. This increase is part of a broader trend across India’s top cities, where housing demand, combined with limited supply, has driven prices up. As a result, affordability has declined, making it harder for many to enter the housing market. MagicbricksDeclining Affordability Across Major CitiesThe rising housing prices have also contributed to a worsening property price-to-annual household income ratio (P/I Ratio) across the country. According to a report by Magicbricks, the average P/I Ratio in India has increased from 6.6 in 2020 to 7.5 in 2024. This is well above the globally accepted benchmark of 5, indicating that housing in India is becoming increasingly unaffordable.MMR (14.3) and Delhi (10.1) are the least affordable regions, with property prices far outpacing household incomes. In contrast, cities like Chennai, Kolkata, and Ahmedabad remain relatively affordable, with a P/I Ratio of 5.EMI Burden on Home Buyers IncreasesThe report also sheds light on the rising EMI burden faced by home buyers in India. As housing prices continue to rise, so does the burden of home loan EMIs on buyers. The EMI-to-monthly income ratio has risen from 46 per cent in 2020 to 61 per cent in 2024, reflecting the growing financial strain on homeowners, particularly in metropolitan areas. The situation is particularly severe in MMR, where the EMI burden has reached 116 per cent of monthly income, followed by New Delhi at 82 per cent, and Gurugram and Hyderabad, both at 61 per cent. In contrast, cities like Ahmedabad and Chennai (41 per cent) and Kolkata (47 per cent) remain more affordable for potential buyers.Outlook: Property Market to Stabilise in coming yearDespite the surge in prices and worsening affordability, the Magicbricks report suggests that the market could stabilize in the coming years. “The current situation is likely to hit equilibrium conditions with market trends indicating a deceleration in price growth due to an anticipated increase in residential supply,” the report notes.In conclusion, while cities like Hyderabad and Noida have experienced extraordinary price hikes, affordability concerns have risen nationwide, particularly in major metropolitan areas. As the market adjusts, potential buyers will continue to face challenges in navigating the current housing landscape.



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