Bengaluru The 4th Most Expensive Real Estate Markets
Driven by the constant demand for housing properties, Bengaluru has emerged as the fourth most expensive real estate market in the country, stated a report published by Knight Frank consultancy firm. Bengaluru emerged as the fourth most expensive real estate market in India in a study analysing the affordability indexes of eight major cities. Fuelled by the aspiration of most of the people to settle in metropolitan cities, Bengaluru showed a 2 percent annual hike in its position and stood at 28 percent in the index. The city had stood at 26 percent in the index during the same period last year. Along with this, Mumbai and Hyderabad were known to have one of the most expensive residential markets in the country. The index revealed that Bengaluru’s affordable housing market has become more expensive mainly because of the 50 bp hike in the repo rate by the Reserve Bank of India the previous month. The repo rate hike ultimately caused the rise in median loan rates. These loan rates are a direct indication of the affordability of interested buyers and also impact consumer behavior. Including Bangalore, the report kept a track of the affordability of seven other major Indian cities. Out of the eight cities, Ahmedabad continued to be one of the most affordable housing markets in the country. The city has maintained the title of being ‘the most affordable housing destination’ for the last nine months from January to September. Pune and Tamil Nadu’s Chennai were the runner-ups in the race to be ‘the most affordable housing market’ in the country. According to the report, Ahmedabad stood at 22 percent in the index, followed by Maharashtra's Pune which stood at 26 percent and Chennai scored 27 percent in the index. In a recent report, Shishir Baijal, Knight Frank India Chairman and MD, said home affordability has worsened this year mainly due to the rise in median loan rates. As the rate cycle has changed, there has been a fall in affordability by two percent. He also expressed that the decrease in affordability is hardly going to impact the buyers' sentiments but may impact their choices and force them to compromise by considering lower-priced housing units. The expectation of a further rise in rates will discourage home buyers from deferring their purchases.
Tags : demand housing properties Knight Frank Bengaluru expensive real estate market Shishir Baijal Knight Frank India Chairman MD