The auction of lands in Kokapet and Budvel at extremely high prices has made it nearly impossible for the common man to afford property in those areas.
Real estate costs are expected to increase by at least 20%, creating unaffordable properties, especially for middle-class and salaried individuals.
Hyderabad’s real estate market is now the second most expensive in India, with households spending 31% of their income on housing loan EMIs.
A high EMI-to-income ratio indicates unaffordability, with 50% being a critical limit. Knight Frank’s Affordability Index ranks Mumbai, Hyderabad, Delhi-NCR, and other cities accordingly.
The affordability index reveals that Mumbai is the priciest housing market, followed by Hyderabad and Delhi-NCR.
The city’s real estate sector is thriving, as seen by the Hyderabad Metropolitan Development Authority’s recent auctions that generated a significant Rs 7000 crore.
Hyderabad also faces an unsold housing inventory issue, with one lakh unsold units, the second highest in the country after Thane.
