Owning a home is a dream for everyone. A large number of people now look to buy houses in metropolitan cities at affordable prices. But do you know which cities in India are the most affordable? Here, we'll tell you which cities are the cheapest, easiest, and most affordable.
How Much Does A House Cost In Big Cities Like Mumbai?
As per the Knight Frank India Affordability Index report, home ownership in Mumbai has become affordable. Purchasing a house in big cities like Mumbai now costs 47 per cent of the household income, down from 50 per cent last year. The highest spike took place in 2010, at 93 per cent. Banks use a 50 per cent affordability threshold as a parameter to determine the sustainability of a mortgage.
No loans are approved above this framework. Homeownership becomes a possibility for middle-class families, and sustainable, while the rates are below the decided market threshold.
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Which Indian Cities Have Cheapest Property Rates?
Apart from Mumbai, this tremendous change in sustainable housing has also expanded to other cities. 90 per cent of India’s largest cities are expected to see homeownership become easier in 2025. These drastic changes were mainly due to the 125 basis-point cut in the repo rate, enforced by the RBI effective from February 2025.
Ahmedabad stood out as another hub of a sustainable market for housing, with a low rate of 18 per cent market requirement. Followed by Pune and Kolkata in second place in the market, with a rate of 22 per cent each, while Chennai stood at 23 per cent. Compared to other states, Bengaluru and Hyderabad remain in the lower affordable section at 27 per cent and 30 per cent, respectively.
Property Rate In Delhi-NCR
On the contrary, properties in the NCR region have seen a decline in terms of affordability, with a rise from 27 per cent to 28 per cent. The report indicates that the increase in luxury property buyers led to an increase in the market threshold.
However, the minimal increase remains below the 50 per cent stress threshold mark, without signalling a larger impact.
Unlike major metropolitan hubs, cities such as Ahmedabad, Pune, and Kolkata are experiencing steady and sustainable real estate growth. Here, moderate price increases, rising household incomes, and low borrowing costs have created a stable environment that supports consistent demand, avoiding the boom-and-bust cycles often seen in larger Indian cities.