India, Dec. 23 -- The affordability of home purchases for homebuyers has improved in 2025, as interest rates have dropped significantly since the end of 2024, according to Knight Frank India's Affordability Index report. Ahmedabad is the most affordable housing market among the top eight cities, with a ratio of 18%, followed by Pune and Kolkata at 22%, according to the report.

The report said that the affordability in the Mumbai real estate market has improved significantly, with the EMI-to-income ratio declining to 47%. This marks the first time in the city's history that affordability has fallen below the 50% threshold, signalling a new and more sustainable level of housing affordability. On the other hand, affordability has dropped ma...