Ahmedabad tops as India's most pocket-friendly city; know which city is the most expensive

According to a new report released by Knight Frank, India's leading property consultant, Ahmedabad is the most affordable Indian city to reside in.

The affordability index published by Knight Frank evaluates the affordability of living in a particular city by considering the EMIs required for a resident to purchase a home using a loan. This cost is then divided by the total income of an average household within that 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.

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

Whereas, on the other hand, Mumbai is the most expensive housing market. The home loan EMI ratio is a whopping 55% means that the average household needs to pay more than half its income.

Hyderabad is the 2nd most expensive city, Delhi marks as the 3rd, Tamil Nadu 4th and Pune, stands at the 5th position.

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