Hyderabad: The real estate market in Hyderabad became expensive in 2023 due to a rise in home loan rates and property prices.
According to Knight Frank’s Affordability Index for 2023, Mumbai became the most unaffordable real estate market as the home loan EMI of an average household in the city is 55 percent of income.
On the other hand, real estate in Ahmedabad, Gujarat is the most affordable, as the home loan EMI to income percentage in the city is only 23 percent.
Home loan EMI to income percent in Hyderabad’s real estate
In Hyderabad’s real estate market, the home loan EMI to income ratio is 31 percent in 2023, which is an improvement when compared to affordability in 2019. In the year before the outbreak of the pandemic, the home loan EMI to income percentage was 34.
However, Hyderabad continues to be the second most unaffordable real estate market due to the high home loan to income ratio.
The percentage in the National Capital Region (NCR) is 30 percent, whereas, in Chennai and Bengaluru, it stands at 28 percent.
| City | 2010 (percent) | 2019 (percent) | 2020 (percent) | 2021 (percent) | 2022 (percent) | H1 2023 (percent) |
| Mumbai | 93 | 67 | 61 | 52 | 53 | 55 |
| Hyderabad | 47 | 34 | 31 | 28 | 30 | 31 |
| NCR | 53 | 34 | 38 | 28 | 29 | 30 |
| Bengaluru | 48 | 32 | 28 | 26 | 27 | 28 |
| Chennai | 51 | 30 | 26 | 24 | 27 | 28 |
| Pune | 39 | 29 | 26 | 24 | 25 | 26 |
| Kolkata | 45 | 32 | 30 | 25 | 25 | 26 |
| Ahmedabad | 46 | 25 | 24 | 20 | 22 | 23 |
Top Choice for NRIs
Despite being the second-most expensive real estate market in India, Hyderabad’s real estate market has emerged as a top choice for NRIs.
A significant percentage of NRIs residing in the US, Canada, the Gulf, Europe, etc., prefer housing units in Hyderabad.
Even though stocks and mutual funds offer better returns compared to investments in the real estate market, NRIs are inclined to purchase homes in top cities like Hyderabad, Bengaluru, and Delhi-NCR.
One of the reasons behind this is their experience during COVID-19. Many of them, especially those who were working in Gulf countries, lost their jobs during the pandemic, compelling them to return to India.
