New Delhi, Dec. 23 -- Lower home loan interest rates have significantly improved housing affordability across seven of India's eight major cities in 2025, according to Knight Frank India's latest Affordability Index.
The report further showed that Ahmedabad has emerged as the most affordable housing market, with households spending just 18% of their income on home loan EMIs.
Pune and Kolkata follow closely, each recording an EMI-to-income ratio of 22%. These levels are well below the 50% threshold typically considered the upper limit of affordability by lenders. Mumbai has achieved a notable milestone. The city's EMI-to-income ratio has fallen below the critical 50% mark, improving to 47% in 2025.
This shift reflects a combination of eas...