Prices of residential properties increased in Delhi-NCR
Digital Desk, New Delhi. Despite falling interest rates on home loans, the sharp rise in residential property prices in Delhi and the National Capital Region (NCR) has hit home affordability.
Real estate advisory firm Knight Frank India said the affordability of people in Mumbai has improved this year.
Prices of residential properties increased in Delhi-NCR
Knight Frank's Housing Affordability Index measures what percentage of a family's income is required to pay the monthly installment (EMI) for a house in a city.
According to this index, an index level of 40 percent in a city indicates that the average family there will have to spend 40 percent of their income on EMIs. Generally, a ratio of more than 50 percent between monthly installment and income is considered inconvenient for the buyer.
The ratio between monthly installment and income in Delhi-NCR region was 28 percent in 2025, which is marginally higher than 27 percent last year.
Improving home affordability in Mumbai
Knight Frank said, 'NCR has been the only major housing market where buyer penetration has declined this year. This is due to the sharp rise in prices of prime properties here and increased activity in the premium residential segment.
Ahmedabad is the most accessible among the top eight cities in terms of home affordability, with an EMI to income ratio of 18 percent.
After this, Pune and Kolkata have a ratio of 22 percent. Access to home buyers in Mumbai has improved this year. There the ratio of EMI and income will come down to 47 percent in 2025.
(With inputs from news agency PTI)