India’s Housing Affordability Set to Stabilize by 2028, Report Finds
New Delhi, March 26 – Homebuyers in India may find the market becoming more accessible in the coming years, according to a new report released Thursday. The report by CBRE South Asia Private Limited projects a stabilization of housing affordability between 2026 and 2028, offering potential relief to those struggling with rising property prices and loan costs.Affordability Shift Expected
The consultancy’s India Residential Market Outlook 2026 indicates that household income growth is now expected to outpace property price increases for the first time since 2021. This shift is anticipated to ease the financial burden of home loans for a wider range of buyers across major Indian cities.EMI-to-Income Ratio Analysis
The report analyzed the EMI-to-income ratio across six key cities – Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Pune – examining three income groups between 2021 and 2028. Findings revealed that affordability had deteriorated steadily between 2021 and 2024, primarily due to higher interest rates and faster property price growth compared to household incomes. However, this trend is projected to reverse from 2026 onwards, with the EMI-to-income ratio expected to stabilize across all income groups.Market Trends in 2025
The residential market demonstrated strength in 2025, with both new launches and sales exceeding 2.7 lakh units. A notable trend emerged towards premium and luxury housing, accounting for approximately 27 percent of total sales. Sales within this segment grew over 30 percent compared to the previous year.Outlook for Future Demand
Industry experts suggest that this shift in affordability, coupled with easing interest rates and slower property price growth, will support housing demand as India progresses towards becoming an upper-middle-income economy by 2030.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.