According to a recent report by Knight Frank, Ahmedabad is turned out to be the most affordable residential market in India with an affordability ratio of 24 percent, followed by Pune and Chennai.

Ahmedabad, with an affordability ratio of 24 percent, is the most affordable housing market in the country, as per the latest report by Knight Frank. The city is followed by Pune and Chennai at 26 percent each in 2020. Mumbai persists in being the most expensive market, with a ratio of 61 percent.

The affordability index tracks the Equated Monthly Installments (EMIs) to income ratio for an average household. It has depicted increasing housing affordability over the past decade.

There are a few reasons behind the prices being affordable. Ahmedabad has been adversely impacted by the continuing slowdown in sales owing to the COVID-19 pandemic. The margins of real estate developers were already thin for many years, and the situation has only exasperated.

The contagion has forced developers to negotiate more aggressively with potential home buyers on pricing and payment terms-and-conditions to sustain property transaction levels. The same has led to average prices dropping by two percent, YoY, in the first half of 2020.