Cities where buying a house bank cheaper also include ahmedabad pune and kolkata according to Housing Affordability Index

Housing affordability: EMI has also become cheaper on home loans after RBI’s repo rate cut this year. Due to this, the affordability of buying houses from 8 big cities of India has also improved in the first 6 months of 2025. According to the latest affordability index of Knight Frank India’s H1 2025, the cities in which the houses have become cheaper include the names of Ahmedabad, Pune and Kolkata.

Ahmedabad most affordable housing market

In this index, Housing Affordability was tracked in selected cities of the country. This showed that the city of Ahmedabad of Gujarat is the most affordable housing market among the 8 major cities of the country. In Ahmedabad, people spend only 18 percent of their average income on home loan EMI. This is much less than 40 percent of the affordability limit, due to which it has emerged as the most budget friendly city for those who buy the house.

Calculation is done on this basis

Explain that the calculation of the affordable housing market is done on the basis of EMI/Income ratio. That is, how much percent of the salary you get goes to EMI. Usually, no more than 40 % EMI of monthly income should not go into payment. Suppose your salary is 50,000, then according to the EMI/Income Rati, 50,000 will have 40 percent 20,000, then the same amount should be made on the EMI of home loan. The higher the EMI/income ratio, the more the pressure on the house buyer will increase.

This city is at number two, third

In this index, Pune is second with 22 percent affordable ratio and Kolkata is third with 23 percent affordable ratio. In the index, Mumbai has been described as the most expensive city in the country. The affordability ratio here has fallen from 50 percent to 48 percent after the Reserve Bank reduced the repo rate, but it is still more than other cities. The index has shown that in the National Capital Region (NCR), now 28 percent of their income is spending on EMI. Similarly, the EMI/income ratio of Hyderabad is 30 percent.

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