India’s residential market continues to show strong demand as housing affordability remains steady across major cities, supported by lower borrowing costs and improved home loan conditions.
According to the Knight Frank India report, six of the eight major cities tracked remained within the affordability threshold of 50%.
Lower interest rates have helped buyers manage home loan EMIs more comfortably.
Ahmedabad remains India’s most affordable housing market with an affordability ratio of 23%.
Other affordable cities include: • Kolkata – 25% • Pune – 28% These markets continue attracting buyers due to balanced property prices.
The National Capital Region (NCR) recorded an affordability ratio of 65%, above the 50% benchmark.
Despite higher prices, NCR remains a preferred market due to: ✓ Better connectivity ✓ Employment opportunities ✓ Infrastructure growth ✓ Strong housing demand
Lower borrowing costs help buyers with: ✓ Reduced EMI burden ✓ Better loan eligibility ✓ Increased confidence to purchase homes
After rate hikes in 2022, affordability improved as interest rates stabilised from 2023 onwards.
The RBI maintained the repo rate at 5.25% during February and June 2026 meetings.
While lower interest rates support buyers, rising property prices continue to impact affordability in some markets, especially NCR.
Balancing property prices and buyer income remains important for future growth.
Homeownership remains a priority because of:
✓ Long-term investment value ✓ Financial security ✓ Growing infrastructure ✓ Easy financing options
Housing demand is expected to remain strong in H2 2026 as supportive interest rates, stable incomes, and infrastructure development continue driving buyer interest.
Stable affordability and better financing conditions make this a favourable time to explore residential opportunities.
Choose the right location. Choose the right property.