 "Mumbai and Delhi still most expensive for owning, renting a property")
ArthaYantra Corporation, a web-based full service financial advisor, in its annual buy versus rent (ABRS) report, said Mumbai and Delhi remain the most expensive cities for both buying and renting a residential property out of 8 top cities it surveyed.
While Chennai and Pune are mostly affordable for rentals, people with an annual income of Rs 10 lakhs and above may consider buying a residential property in Hyderabad and Ahmedabad as the two cities found to be affordable for both buying and renting, according to the report.
ArthaYantra developed a patented composite score to quantify buy versus rent decision and also explain the reason to buy or rent in a particular city. It uses a host of parameters including salaries, taxation and prices to arrive at a recommendation.
The report covers the cites of Hyderabad, Bengaluru, Chennai, Delhi, Mumbai, Pune, Kolkata and Ahmedabad.
Someone with even an annual income of Rs 25 lakh can not afford to buy a house in Mumbai where as Delhi national capital region (NCR) is affordable for people with a similar income to buy a property, the report says.
Buying of property in Chennai and Pune is suitable for people with an annual income of Rs 20 lakh and above Rs 17 lakh respectively.
Bengaluru and Kolkata property markets are affordable for people with annual income of Rs 15 lakh where as in Hyderabad any one with an annual income of over Rs 9 lakh can consider buying a residential property here, according to the report.
Delhi has seen a 20% increase in rentals and a 9.1% rise in property prices over last year. In Kolkata both the rentals and property prices grew by a little over 11%, according to the survey report.
"Buying a home without a clear economic benefit can be detrimental to the financial well-being of the buyer,. We recommend that ABRS should be used as the mainstay tool to arrive at a more objective decision on whether to buy or rent a property,"Nitin B Vyakaranam, CEO of ArthaYantra said.