Sum total of all your EMIs should not exceed 40% of your net income

Make sure buying a house will not lead to compromises on other crucial financial goals

JLL’s Home Purchase Affordability Index (HPAI), which measures housing affordability across India’s seven key residential markets, was on the upswing from 2014 and peaked at the end of 2021. It, however, slid in 2022 and may continue to do so in 2023, according to a recent report from the real estate consultancy. Potential buyers need to carefully evaluate their affordability before taking the buy decision.

Prices, interest rates denting affordability

The HPAI, which is city-specific, takes into consideration three things: average price of a 1,000 sq ft house in the city, its average household income, and the home loan interest