India's homebuyer affordability steady in six of eight major cities

Knight Frank India's Affordability Index shows that six of the eight major cities surveyed remain within the 50% affordability threshold in the first half of 2026, helped by 125 basis points of cumulative monetary easing by the Reserve Bank of India. Ahmedabad is the most affordable market at 23% of household income spent on EMIs, followed by Kolkata (25%) and Pune (28%).

The Mumbai Metropolitan Region and the National Capital Region continue to exceed the threshold, with affordability ratios above 50%, while Bengaluru and NCR saw slight declines compared with 2025. RBI policy rates held at 5.25% during February and June 2026 meetings, with the central bank citing regional conflict‑related energy risks and monsoon uncertainty.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “Housing affordability remains a key driver of residential demand. The cumulative benefit of lower interest rates continues to support homebuyers across most markets.” The firm expects the easing to sustain housing demand through the second half of the year.