Mumbai, 3 July 2026 (BFN Bureau): Homebuyer affordability in India remains stable across most residential markets, according to Knight Frank India’s latest Affordability Index report. The report highlights that six out of eight major cities are within the affordability threshold, thanks to recent monetary easing.
Affordability Trends Across Major Cities
Ahmedabad stands out as the most affordable housing market, with a ratio of 23%. Kolkata and Pune follow, with ratios of 25% and 28%, respectively. In contrast, the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) exceed the 50% affordability benchmark, indicating that homebuyers in these areas spend a significant portion of their income on housing.
Impact of Monetary Easing
Lower borrowing costs have played a crucial role in maintaining affordability. The Reserve Bank of India’s recent 125 basis points of monetary easing has provided much-needed support. Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted, “Housing affordability remains a key driver of residential demand. The cumulative benefit of lower interest rates continues to support homebuyers across most markets.” This trend is expected to sustain housing demand through the second half of 2026.
What This Means For You
For potential homebuyers, this report indicates a favorable environment for purchasing homes, especially in cities like Ahmedabad, Kolkata, and Pune. With lower borrowing costs, now may be a good time to consider investing in real estate.
Key Takeaways
- Six out of eight tracked cities remain within the affordability threshold.
- Ahmedabad is the most affordable city, with a 23% income-to-EMI ratio.
- Lower borrowing costs are expected to support housing demand in the coming months.
