Photo taken on July 12, 2019 shows buildings under construction in Mumbai, India. India's financial capital Mumbai's residential asset remains the least affordable in the country as the nation's housing affordability has worsened over the past four years, the findings of the nation's Central Bank released said late on Thursday. Buyers of residential property in Mumbai now pay 43.3 percent of their income as equitable monthly installment (EMI) for the home loan as compared to 42.6 percent of their income in March 2015. (Str/Xinhua)
MUMBAI, July 12 (Xinhua) -- India's financial capital Mumbai's residential asset remains the least affordable in the country as the nation's housing affordability has worsened over the past four years, the findings of the nation's Central Bank released said late on Thursday.
According to Median House Price to Monthly Income factor Mumbai got a score of 74.4 while Bhubaneswar in India's eastern state of Odisha got 54.3, making the latter's residential asset the most affordable in the country as of March 2019, the release said.
Housing affordability in the country has worsened over the past four years as the overall house price to income ratio rose to 61.5 in March 2019 from 56.1 in March 2015, as per the study. In other words, Indians now spend a larger portion of their income on buying a house than they were four years ago even as affordable housing scheme continues to receive fiscal support from the government.
The union budget last week announced steps towards a rental housing policy as there were 11 million vacant houses as per Census 2011. On the other hand, private sector real estate developers were complaining about the financial stress in the sector as their sales have taken a hit with slowing economy amid job losses.
Buyers of residential property in Mumbai now pay 43.3 percent of their income as equitable monthly installment (EMI) for the home loan as compared to 42.6 percent of their income in March 2015. In Chennai and Delhi too, it has gone up to 38.4 percent and 36.9 percent while Bengaluru remains unchanged at 35 percent, the release said.
Since July 2010, India's Central Bank, the Reserve Bank of India, has been conducting a quarterly residential asset price monitoring survey on housing loans disbursed by select banks and housing finance companies across 13 cities.
These include Mumbai, Chennai, Delhi, Bengaluru, Hyderabad, Kolkata, Pune, Jaipur, Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar.
