Affordability in Housing Markets in India: An Overview

The property prices in India have been very high, making a purchase of real estate beyond the reach of a middle class family. The purpose of the study is to analyze the affordability index. Every consumer durable goods become affordable over time, however the real estate prices have bucked the trend. The study attempts a comparison of income levels, real estate prices and stock indices with respect to CAGR from year 2000 to 20I7. Analysis reveals the income levels are lower than the housing prices, making housing unaffordable. Changes in the asset prices have effect on the household wealth and on the overall financial stability in case of a sudden downturn. All other consumable goods have become affordable over the time. Post demonetization, GST and RERA the housing markets have dynamics changed, affordability is likely to be ensured.