Summary:

In 2024, a healthy economy and steady interest rates increased housing affordability in India's primary real estate markets. Rising incomes have made homeownership more accessible. According to Knight Frank India's report, affordability (measured by the EMI-to-income ratio) has improved in seven of eight cities. Ahmedabad, Pune, and Kolkata ranked as the most affordable markets, with affordability ratios of 20%, 22%, and 24%, respectively, with Bengaluru being the outlier.

Despite rising property prices, strong salary growth has allowed people to remain financially confident in their home investments. Mr. Shishir Baijal of Knight Frank India emphasized the importance of affordability in stimulating demand, thus fueling economic growth. In Ahmedabad, affordable housing is supported by legislative incentives, infrastructure development, and industrial expansion. While Mumbai's affordability has improved by 17%, Bengaluru's has declined. Nonetheless, the residential market remains strong due to ongoing expansion and solid economic conditions.

Source: IBEF

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