The highlights of the Reserve Bank of India's (RBI) quarterly residential asset price monitoring survey (RAPMS)  released on Thursday were:

  • Median LTV (loan-to-value) ratio, which a measure of calculation credit risk on housing loans, had moved from 67.7 percent to 69.6 percent between March 2015 and March 2019 indicating that banks have become increasingly risk tolerant.
  • Median EMI-to-Income (ETI) ratio, that measure loan eligibility, remained steady during the last 2 years. Mumbai, Pune and Ahmedabad recorded higher median ETI compared to other cities.
  • Housing affordability worsened over the past 4 years as the house price to income (HPTI) ratio increased from 56.1 in March 2015 to 61.5 in March 2019.
  • Mumbai remains the least affordable city in India, while Bhubaneswar is the most affordable city.

RBI's calculations on median house price-to-monthly income ratio in the 13 cities, ranked the affordability of the cities in the following manner (most expensive to least expensive).