Affordable houses available in metros, says Knight Frank
August 12, 2009
For those planning to buy affordable homes in the metro cities, here is good news. You do not have to go on the outskirts of the city to buy a cheap, affordable home, says global property consultant Knight Frank.
“As long as the house that you are buying costs under 3.5 times of your annual earning, it can be termed as affordable,” said Pranay Vakil, chairman, Knight Frank.
If you are a middle class family person with total earnings between Rs300,000 to Rs1 million, you can easily buy an affordable home within the vicinity of a metro city.
Take for example, residents in Chennai who fall in the income group between Rs300,000 and Rs2.1 million can easily afford a home of about 550 sq ft area at Rs2,400 per sq ft or a home with 1,200 sq ft area at Rs3,800 per sq ft.
However to enjoy the same in Mumbai, your earning should be between Rs1.2 million and Rs3.8 million. With this kind of earnings you would be able to afford a home of 800 sq ft area at Rs1,500 per sq ft or one of 950 sq ft area at Rs4,100 per sq ft, the Knight Frank reports said. “Major chunk of affordable property starts from Mira road in Mumbai suburb, Kharghar in Navi Mumbai and in Kolkata other than Baliganj and Alipore all locations are affordable,” said Samantak Das, national head research, Knight Frank.
Byers from KolKata and NCR can buy a home of about 700 sq ft to 1000 sq ft at an affordable rate varying from Rs1,800 per sq ft to Rs4,000 per sq ft.
The report also stated that Kolkata and Pune have the maximum number of affordable locations. However Mumbai, national capital region (NCR) and Bengaluru mostly do not enjoy the same privilege as the other cities as the micro market rates at these places are very high.
Across the 7 cities, about 37% from the middle income group falls in this segment. In Mumbai almost 43% people from this group dreams of buying a affordable home within city limits, while in Hyderabad 21% people fall in the same category, the report said. - Pallabika Ganguly