Housing affordability remained largely stable across India's leading residential markets during the first half of 2026, even as property prices continued to rise. According to Knight Frank India, six of the country's eight largest housing markets remained within the accepted affordability benchmark, supported by lower borrowing costs.
The study measures monthly home loan EMIs as a share of household income, with an EMI-to-income ratio of 50% or below considered affordable.
Ahmedabad continued to be India's most affordable housing market, recording an EMI-to-income ratio of 23%.
It was followed by Kolkata (25%), Pune (28%), Chennai (29%), Bengaluru (35%) and Hyderabad (41%).
The Mumbai Metropolitan Region (MMR) remained the country's least affordable residential market with an EMI-to-income ratio of 69%.
The National Capital Region (NCR) followed at 67%, making them the only two cities above the 50% affordability threshold.
The Reserve Bank of India's cumulative 125 basis points of repo rate cuts since February 2025 helped offset the impact of rising residential prices. Home loan interest rates currently start at around 7.1% for borrowers with strong credit profiles.
The RBI has kept the repo rate unchanged at 5.25% in its February and June 2026 monetary policy meetings.
Compared with 2025, affordability weakened slightly in Bengaluru, where the EMI-to-income ratio increased from 34% to 35%.
NCR also saw a marginal increase from 66% to 67%, while affordability remained unchanged in Ahmedabad, Kolkata, Pune, Chennai, Hyderabad and MMR.
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said "Housing affordability remains a key driver of residential demand."
He noted that lower interest rates have helped keep housing sales close to post-pandemic highs, although rising property prices have moderated affordability gains. Healthy employment, stable incomes and supportive financing conditions continue to underpin demand.
Knight Frank said affordability improved steadily between 2016 and 2021, with the trend accelerating during the pandemic due to lower interest rates. It weakened after the RBI raised the repo rate by 250 basis points between May 2022 and early 2023, before improving again following recent monetary easing.
The consultancy expects affordability to remain broadly stable during the second half of 2026, supported by employment growth, urbanisation, rising incomes and a stable interest rate environment. However, inflationary pressures and geopolitical uncertainties could affect market sentiment.
Read More: Gujarat Plans to Setup 'SAMARTH' Semiconductor Hub at IIT Gandhinagar with ₹190 Crore Investment!
Homebuyer affordability remained stable across most major residential markets during H1 2026, with Ahmedabad leading the affordability rankings, while MMR and NCR continued to remain above the 50% EMI threshold.
Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 3, 2026, 4:02 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN