In Hyd, homebuyers spend 41% of income on EMIs

Hyderabad remains India's third least affordable housing market, with homebuyers spending 41% of their household income on home loan EMIs, according to Knight Frank India's Affordability Index.

hyderabad-homebuyers-spend-41-percent-income-on-emis

Trails only Mumbai (69%) and NCR (67%) among the eight major cities: Knight Frank

Property Pulse

Hyderabad continues to rank as India's third least affordable housing market, according to Knight Frank India's Affordability Index, reflecting the city's sustained residential price growth over the past few years. The report estimates that an average homebuyer in Hyderabad spends 41 per cent of household income on home loan EMIs, unchanged from the end of 2025.

The Affordability Index measures the proportion of household income required to service monthly home loan repayments. While Hyderabad remains below the 50 per cent affordability threshold generally considered acceptable by lenders, it trails only Mumbai (69%) and NCR (67%) among the eight major cities covered in the report.

According to Knight Frank India, lower home loan interest rates have helped improve affordability across several cities. However, the benefit has been partly offset by rising residential prices in markets such as Hyderabad, where demand continues to remain healthy.
Shishir Baijal, international partner, chairman and managing director, Knight Frank India, said housing affordability remains one of the key drivers of residential demand.

He said lower borrowing costs have supported homebuyers, although rising property prices have moderated the overall improvement in affordability. He added that healthy employment, stable incomes and supportive financing conditions continue to underpin housing demand. With Hyderabad continuing to attract investments in the IT, GCC and infrastructure sectors, industry observers believe affordability will increasingly depend on the pace of income growth alongside future movements in home prices and interest rates.

Affordability math

• Hyderabad EMI burden is 41% of household income.
• Third least affordable housing market in India.
• Mumbai (69%) and NCR (67%) rank above Hyderabad.
• Lower interest rates have supported affordability.
• Rising home prices continue to remain a key challenge.