<p>Amid higher home loan interest rates, Ahmedabad, followed by Pune and Kolkata topped the charts in terms of real estate affordability during the first half of 2023, according to a new report released by property consultancy Knight Frank India on Wednesday. The consultancy’s affordability index tracked the EMI (equated monthly instalment) to income ratio for an average household in the top eight cities of India.</p>.Provident Housing set to launch 5 projects worth Rs 3,800 cr in FY24.<p>“Higher home loan rates have reduced affordability across all markets so far in 2023,” the report highlighted. In order to tame inflation, the Reserve Bank of India increased its base lending rate (to banks)- repo rate -by 250 basis points during FY23 to 6.5 per cent currently. Accordingly home loan interest rates have risen to even breach the 8.5 per cent mark in some cases. “This has impacted affordability by an average of 2.5 per cent across cities and increased the EMI load by 14.4 per cent since then,” the report noted. </p>.Ashton Gray Investments Unveils Promising US Real Estate Investment Opportunity at 'Grayvolve' Event in Bengaluru.<p>However, overall demand has remained unimpaired, with the mid and premium housing segments leading the market. Home buyers in the affordable segment (under Rs 50 lakh) have a higher dependence on home loans and are therefore more sensitive to rate hikes, the report reasoned.</p>.<p>“The mid and premium segments in the residential market have been consistently outperforming and points to a significant shift in the market’s underlying fabric,” said Knight Frank India Chairman and Managing Director Shishir Baijal, adding that while the market has remained strong thus far, further interest rate increases could put pressure on homebuyer ability and sentiments.</p>
<p>Amid higher home loan interest rates, Ahmedabad, followed by Pune and Kolkata topped the charts in terms of real estate affordability during the first half of 2023, according to a new report released by property consultancy Knight Frank India on Wednesday. The consultancy’s affordability index tracked the EMI (equated monthly instalment) to income ratio for an average household in the top eight cities of India.</p>.Provident Housing set to launch 5 projects worth Rs 3,800 cr in FY24.<p>“Higher home loan rates have reduced affordability across all markets so far in 2023,” the report highlighted. In order to tame inflation, the Reserve Bank of India increased its base lending rate (to banks)- repo rate -by 250 basis points during FY23 to 6.5 per cent currently. Accordingly home loan interest rates have risen to even breach the 8.5 per cent mark in some cases. “This has impacted affordability by an average of 2.5 per cent across cities and increased the EMI load by 14.4 per cent since then,” the report noted. </p>.Ashton Gray Investments Unveils Promising US Real Estate Investment Opportunity at 'Grayvolve' Event in Bengaluru.<p>However, overall demand has remained unimpaired, with the mid and premium housing segments leading the market. Home buyers in the affordable segment (under Rs 50 lakh) have a higher dependence on home loans and are therefore more sensitive to rate hikes, the report reasoned.</p>.<p>“The mid and premium segments in the residential market have been consistently outperforming and points to a significant shift in the market’s underlying fabric,” said Knight Frank India Chairman and Managing Director Shishir Baijal, adding that while the market has remained strong thus far, further interest rate increases could put pressure on homebuyer ability and sentiments.</p>