Survey shows Mumbai is the most expensive Indian city to live in

Mumbai has been ranked as the most expensive city to live in India, as per a news report released by leading property consultant Knight Frank India.

A file image of high-rise buildings in Mumbai city. Photo Courtesy: Pixabay

The affordability index released by Knight Frank measures living affordability based on the EMIs a resident in that city has to pay if they get a house with a home loan divided by the total income of an average household in that city, reports NDTV.

The Knight Frank Affordability Index indicates the proportion of income that a household requires, to fund the monthly installment (EMI) of a housing unit in a particular city.

So, a Knight Frank Affordability index level of 40% for a city implies that on average, households in that city need to spend 40% of their income to fund the EMI of housing loan for that unit, reports the Indian news channel.

An EMI/Income ratio over 50% is considered unaffordable as it is the limit beyond which banks rarely underwrite a mortgage.

The most expensive housing market is Mumbai.

For Mumbai, the home loan EMI to income ratio is a whopping 55%, meaning that an average household has to pay more than half of its income on home loan EMIs if they have to get a house on loan.

As per the survey, the next most expensive city in India is Hyderabad.

The survey showed the most affordable city to live in India is Ahmedabad.

C to I News Desk
C to I News Desk – CtoI

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