Affordability improves, but housing in India continues to be expensive

Young couples should avoid this obligation if it puts them in a tight liquidity position

A recent study by real estate consultancy JLL India has found that housing has become more affordable across India’s major cities between 2011 and 2018 (see table). While the situation has improved relatively, housing in India continues to be expensive in absolute terms. Hence, potential buyers need to be mindful of the risk of over-leveraging.
 
Three factors are responsible for the improvement in affordability. “Over the past five-six years, home prices have declined marginally, stagnated, or increased by at most 2 per cent annually. Over the same period, average household income has grown at a higher pace. Interest rates