Housing Affordability Remains Steady in Major Indian Cities: Insights from H1 2026
Explore the latest report on housing affordability in major Indian cities for H1 2026, highlighting trends, key insights, and the impact of borrowing costs on the real estate market.
Overview of Housing Affordability in H1 2026
According to a recent report by Knight Frank India, housing affordability has remained largely stable across six of the eight major residential markets in India during the first half of 2026. This stability is primarily attributed to lower borrowing costs, which have positively influenced homebuyer sentiment and demand.
City-Specific Insights
A closer look at the cities reveals that Ahmedabad stands out as the most affordable housing market, with an affordability ratio of just 23%. Following closely are Kolkata and Pune, with ratios of 25% and 28%, respectively. However, the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) continue to exceed the 50% affordability benchmark, indicating a more challenging market for potential homebuyers.
Factors Influencing Affordability
The report highlights that the cumulative impact of 125 basis points of monetary easing has played a significant role in supporting homebuyer affordability. Despite some deterioration in affordability in Bengaluru and NCR compared to 2025, the overall market remains stable, thanks to favorable borrowing conditions and stable incomes.
Looking Ahead
As we move into the second half of 2026, the continued stability of interest rates is expected to further bolster housing demand. The report emphasizes that while rising property prices have moderated affordability gains, the overall environment remains conducive for homebuyers, with residential sales nearing post-pandemic highs.
Frequently Asked Questions
What is the current state of housing affordability in major Indian cities?↓
Housing affordability has remained stable in six of the eight major Indian cities in H1 2026, with lower borrowing costs supporting homebuyer demand.
Which city is the most affordable for housing in India?↓
Ahmedabad is currently the most affordable housing market among the top eight cities, with an affordability ratio of 23%.
How can renters benefit from tools like TheBrik?↓
Renters can use TheBrik app to find affordable rental options and manage their housing needs more efficiently, making it easier to navigate the rental market.