Buying a house in big cities of India is becoming increasingly expensive. According to a new report by proptech company Square Yards, the average price of a new 3BHK flat in the top five metros of the country has now reached around Rs 2.7 crore. This figure shows that buying a house in big cities is now becoming just a dream.
According to the report, if a person's annual income is around Rs 23 lakh, then he will have to spend almost 12 years of his entire income to buy a 3BHK. Surprisingly, the average income of India's top 1% earners (about Rs 22 lakh annually) is also at this level. This means that even for the rich class, it has not been easy to buy big houses.
In the last few years, the demand for larger and amenity-equipped houses has increased. The reasons for this are the trend of work from home, changing family needs, desire for more space and the idea of buying a house keeping the future in mind. But on the other hand, rising land prices, construction costs and the increasing number of premium projects have put the prices out of the reach of the common man.
The report shows that only 11% of the newly launched homes fall in the affordable segment. The remaining 89% houses are in such areas where the EMI burden is much more than the income of the people. There are about 41% markets where serious financial pressure is being seen on buyers.
Bengaluru has emerged as the most balanced market, because along with the prices, the income of the people has also increased here. There is huge price difference between different areas in NCR and Mumbai region, hence choosing the right location has become very important. In Hyderabad, prices rose faster than incomes, making it more difficult to buy a home. The central areas in Pune are more favorable for the rich, while common buyers have to move to the outskirts.
The report says that if buyers choose the right location, they can save Rs 30 to 60 lakh. Emerging and outlying areas are now becoming a better option for the common people.
