Residential Asset Price Monitoring Survey conducted by RBI

Published: July 12, 2019

The Reserve Bank of India (RBI) has conducted the quarterly Residential Asset Price Monitoring Survey (RAPMS) on housing loans disbursed by select banks / Housing Finance Companies (HFCs) across 13 cities. The report indicated that housing affordability has 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. The HPTI ratio reflects affordability. Mumbai (with a HPTI of 74.4) remains the least affordable city in India. While Bhubaneswar (54.3) remains the most affordable city for home buying with a price-to-income ratio of 54.3 in the March quarter compared to 47.2 in March 2015. The concept of price-to-income ratio is used by lenders to measure affordability of residential property, essentially as a measure of purchasing power for home buyers.