Overview
- Mumbai’s EMI-to-income ratio fell to 47% in 2025, dropping below the 50% unaffordability threshold for the first time.
- Ahmedabad is the most affordable market at 18%, with Pune and Kolkata next at 22%, and Chennai improving to 23%.
- The National Capital Region was the only major market to worsen, with affordability slipping to 28% due to premium-segment price increases.
- Knight Frank notes 125 basis points of repo rate cuts since February 2025, which lowered home-loan costs and strengthened buyer capacity.
- Bengaluru and Hyderabad remained comfortably below the 50% threshold, and the report anticipates a supportive demand environment into 2026.