Download report

Research

Home Purchase Affordability Index

2021
India’s housing market has never been more affordable
October 04, 2021

Privacy - Terms

Contributors:
Samantak Das Download report
Buying a home now is more affordable than a decade back as property prices have remained stagnant
over the past many years, the interest rate on home loans has fallen to their 15-year low, and the average
household income has witnessed a marginal rise. The trend is likely to continue in 2022 in most cities.

According to JLL’s Home Purchase Affordability Index 2021 report, the combination of three factors –
household income, property prices and home loan interest rates – has made residential property most
affordable since 2011.

In the current calendar year (CY), the household income increased by 7-9% (from the low base of 2020)
in key residential markets - Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad, and Kolkata.

Property prices, however, remained static in all prime residential markets, except for Hyderabad.

Mortgage rates are at the lowest in 15 years. Lower home loan interest rates translate to reduced
equated monthly instalments for buyers, which has a significant impact on affordability.

The affordability in key markets has been getting better since 2014, according to JLL’s Home Purchase
Affordability Index of 2019 and 2020. The third edition of the report comes when the country’s economy
is recovering from the challenges of the second covid-19 wave.

Our analysis suggests that the increase in home purchase affordability is likely to continue in CY2022 in
most markets.

Privacy - Terms
 Download report

HPAI is the ratio of the average household income. Eligible household income is defined as the minimum
income that a household should earn in order to quality for a home loan on a 1,000 sq ft apartment at
the prevailing market price.

Interpretation:

Note: Refer to the Technical Note at the end of the report for the detailed approach and methodology

While residential prices could move up, mortgage rates are unlikely to increase in the following CY as the
central bank would continue to focus on consumer spending. Consequently, overall home purchase
affordability is expected to either remain similar or witness a marginal improvement from 2021 levels.

But the rising affordability does not necessarily translate into higher sales. Before purchasing a house,
buyers decide based on the prevailing economic condition, employment scenario and their future
income.
Privacy - Terms
Know more about our residential services.
Download report

Fill out this form to download report

Sign in with LinkedIn
AutoFill your information

First Name *

Last Name *

Email Address *

Company *

Download

PRIVACY NOTICE

Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider
of real estate and investment management services. We take our responsibility to protect the
personal information provided to us seriously.

Generally the personal information we collect from you are for the purposes of downloading
materials you have requested.

We endeavor to keep your personal information secure with appropriate level of security and
keep for as long as we need it for legitimate business or legal reasons. We will then delete it
safely and securely. For more information about how JLL processes your personal data, please
view our privacy statement.

Let’s find a home that works for you. Privacy - Terms

Whether you’re looking for an apartment in a city-centre or a suburb, you can rely on us for superior
Download
service and for our end-to-end solutions. We’re simplifying home search for you. Click here report
to

experience it.

Get started

You may also like

India
|
Cities
|
August 02, 2021
|
Alternatives
| Residential Asia Pacific
|
Investor
|
Septem

Residential Market Update: Q2 2021 More than 80% of p

make a purchase w

Contact us

Find & lease space

Manage property & portfolio
Design & deliver projects
Invest in real estate Privacy - Terms
Transform with technology
Industries Download report
Trends & insights

About JLL
Careers
Newsroom
Sustainability
Investor relations
Contact us
Subscribe to our newsletter

Follow us

   

Copyright 2021 Jones Lang LaSalle IP, Inc.

Privacy statement
Privacy commitment
Cookie policy
Terms of Service
Site map

Privacy - Terms