Mumbai has become the costliest city, while Ahmedabad has become the most affordable housing market in the country according to property consultant Knight Frank India. The consultant released its Affordability Index 2020, which showed that Ahmedabad was the most affordable housing market in India with an affordability ratio of 24 percent, followed by Pune and Chennai at 26 percent each in 2020.

A ratio over 50 percent makes it difficult to secure home loans from banks and housing finance companies, making it unaffordable to purchase a house, Knight Frank India said. The affordability index, which tracks the EMI to income ratio for an average household, has shown meaningful improvement in affordability over the last decade.

The consultant said that the decline in housing prices and multi-decade low home loan interest rates have helped improve housing affordability in 2020. ''While Mumbai is the most expensive market, with an affordability ratio of (61%), other cities like Ahmedabad, Chennai, and Pune are relatively more affordable,'' Knight Frank said.

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