Hyderabad most affordable metro for homes

NEW DELHI: Hyderabad remains the most affordable metro for home buyers, followed by Ahmedabad and Kolkata.

The 2016 edition of the ‘Buy Vs Rent Report’ of financial advisory firm ArthaYantra shows that buying a house will be better option than renting in the Telangana capital.

The study factors in rentals and real estate prices across eight major cities and then examines how affordable a 1,000 sq ft house is for different income levels.

It also assumes that the buyer will borrow 80% of the price of the property Hyderabad tops the chart with the highest score for prospective buyers earning Rs 8 lakh a year. Property prices have fallen 10.5% in the past four years, while rents are up marginally by 1%.

In Ahmedabad, ranking second, property prices have dropped 20% in the past four years and rents by 4%. This makes buying a compelling option in the city.

For Mumbai, high prices and high rentals have led to the lowest score across all income groups. This shows that though rentals are high, the astronomical property prices rule out the buying option. The Delhi-NCR region is also equally unaffordable.