Salary that can Buy Home in Top Indian Cities

This report will highlight a salary that can buy home in top Indian cities.

We all like to have a property in big cities, right?

But this is tough, as property price in these cities are sky high.

People who live in cities like Mumbai, Delhi, Bangalore etc know how expensive can be a residential property.

I have personally lived in multiple Tier 2 & 3 cities in last 20 years.

In those cities people do not feel the burnt of expensive homes.

But in Tier 1 cities like the 4 Metros (specifically Mumbai & Delhi), price of homes can be a confidence breaker.

People who are currently residing in non-tier 1 cities, and are willing to relocate to a tier 1 city.

They must be aware of the exorbitant cost of homes in tier 1 city .

Who doesn’t want to live in a big city, but only few can get a job in such cities.

People who are already working in tier 1 cities are lucky buy they know its not easy.

Associated with their luck is a challenge.

The challenge is to buy a home in a tier 1 city in India.

The homes are expensive and hence not every salaried person can afford to buy homes in these cities.

There are many people who work in tier 1 city, but they live on a rented apartments.

Even if they want, they cannot afford to buy a home in tier 1 city as its very expensive.

Such people alternatively buy homes in non-tier 1 cities of India.

The different of cost (of homes) between tier 1 and tier 2 cities is huge.

In city like Mumbai, even Rs 12,000/sqft rate, for an average 2BHK home, may prove insufficient.

While in city like Jaipur, a rate of Rs 4,000/sqft can buy a reasonably good home.

In this article, we present to you a study on property prices of top Indian cities.

In this study we have tried to extrapolate the property prices so as to estimate potential gross salary one should earn to be able to buy a home.

When we started to do these calculations, the number of variables were too many.

But we decided to keep the study simple.

The idea is to make a point to our readers instead of falling prey to details.

I hope this study will be a fun for my readers.

But on serious note, people will also realise how difficult it is becoming to buy a home in India (specially in big cities).

MUMBAI

• Population: 2,20,00,000
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 1,49,60,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 1,12,340
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 27,00,000

DELHI NCR

• Population: 1,82,48,290
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 99,00,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 74,300
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 17,85,000

PUNE

• Population: 92,18,902.
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 67,10,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 50,000
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 12,10,000

BANGALORE

• Population: 1,08,39,725.
• Type of Property: New, 2BHK, 1,000 Sqft.
• Readiness: In next 2 years.
• Home Price: Rs 52,80,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 39,600
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 9,50,000

CHENNAI

• Population: 91,21,477.
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 58,30,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 43,700
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 10,50,000

KOLKATA

• Population: 48,00,00.
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 44,00,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 33,000
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 7,93,000

HYDERABAD

• Population: 1,14,58,741.
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 33,00,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 25,000
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 6,00,000

AHMEDABAD

• Population: 62,00,000.
• Type of Property: New, 2BHK, 1,000 Sqft,
• Readiness: In next 2 years.
• Home Price: Rs 47,30,000.
• Interest Rate & Loan Tenure: 9.6%, 20 years.
• EMI: Rs 35,500
• Acceptable Debt to Gross Salary (CTC) Ratio: 50%
• Annual CTC: Rs 8,50,000

Salary That Can Buy Home In Top Non-Tier-1 Cities of India

SL	Non Tier-1 City	Cost of Home (Rs.)	Annual CTC (Rs.)
1	Gurgaon	85,80,000	15,46,329
2	Navi Mumbai	70,40,000	12,68,783
3	Coimbatore	50,93,000	9,17,885
4	Noida	50,60,000	9,11,938
5	Faridabad	45,10,000	8,12,814
6	Surat	41,80,000	7,53,340
7	Ghaziabad	41,14,000	7,41,445
8	Lucknow	38,06,000	6,85,936
9	Agra	37,40,000	6,74,041
10	Nashik	37,07,000	6,68,093
11	Ranchi	35,86,000	6,46,286
12	Jaipur	35,75,000	6,44,304
13	Nagpur	34,10,000	6,14,567
14	Vadodra	32,45,000	5,84,830
15	Chadigarh	30,80,000	5,55,092
16	Bhopal	26,62,000	4,79,759
17	Indore	26,40,000	4,75,794

Conclusion

The above study is done for 2BHK homes only.

While calculating the EMI, we have assumed that home loan is given only on 80% of property price.

The balance 20% (self contribution) will be paid by the buyer from his/her savings.

It is point worth noting that how expensive it is to buy a property in Mumbai.

By far it is costliest city of India in terms of real estate price.

A person earning less than Rs 27 Lakhs may not be able to buy a 2BHK apartment in Mumbai.

Compare Mumbai with Navi Mumbai, and the difference is easily visible.

Person earning Rs 13 Lakhs can buy a home in Navi Mumbai.

There is no doubt that property prices in Mumbai has already crossed the affordability limits of majority Indian’s.

So for people who are willing to relocate to Mumbai for a job, should make sure that their HRA is well negotiated.

Young techies shifting to other cities like Bangalore, Gurgaon, Pune etc should also note that property prices in these cities are also very high.

It is only wise to study the affordability of homes before shifting to a new city.

I hope this article will help my readers to take an informed decision.