Buying a home in India may become less challenging in the coming years, with rising incomes and supportive policies likely to offset high property prices. A report by CBRE South Asia Private Limited suggests that India’s housing affordability is projected to stabilize between 2026 and 2028, offering relief to homebuyers facing escalating property prices and loan costs. The report anticipates that household income growth will outpace property price increases for the first time since 2021, potentially easing the financial burden of home loans for buyers in major cities.
The analysis, focusing on six key cities including Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Pune, indicates a shift in the EMI-to-income ratio trend. Affordability had been deteriorating from 2021 to 2024 due to higher interest rates and faster property price growth compared to incomes. However, from 2026 onwards, the EMI-to-income ratio is expected to stabilize across income groups, signaling a more manageable home buying scenario.
Experts view this as a significant development in India’s housing market, attributing it to factors like declining interest rates, slower price escalation, and increasing household incomes. The report also suggests that India’s progression towards becoming an upper-middle-income economy by 2030 will further boost housing demand. In 2025, the residential market remained robust, witnessing over 2.7 lakh units in new launches and sales, with a notable surge in premium and luxury housing transactions, accounting for about 27% of total sales.
