Delhi-NCR Housing Affordability Dips As Prices Surge; Mumbai Improves Below 50% Threshold

Despite lower home loan rates, a sharp price rise in premium segments has worsened housing affordability in Delhi-NCR, with the EMI-to-income ratio rising marginally to 28% in 2025. In contrast, Mumbai

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2025 December 24 . 7:01 AM

1 min read

In this image we can see the view of the city. In the middle there is a ring road on which there... — In this image we can see the view of the city. In the middle there is a ring road on which there are vehicles. At the bottom there is another road on which there are cars and bikes. In the background there are so many tall buildings. At the top there is the sky. On the left side bottom there are trees. we can see small houses somewhere in the middle of the city.

Delhi-NCR Housing Affordability Dips As Prices Surge; Mumbai Improves Below 50% Threshold

Housing affordability in India’s major cities has shifted in 2025, according to a new report by Knight Frank India. Mumbai has seen notable improvements, while Delhi remains the least affordable market. The changes reflect varying trends in property prices, incomes, and loan conditions across the country.

Mumbai’s housing market has become more accessible, with the EMI-to-income ratio dropping to 47 per cent this year. This marks a clear improvement in affordability for homebuyers in the city.

Ahmedabad retains its position as the most affordable housing market among India’s top eight cities. The city’s EMI-to-income ratio stands at just 18 per cent, making it the easiest place to buy a home. Pune and Kolkata follow closely, with ratios of 22 per cent each. In contrast, Delhi has been named the least affordable city for housing in 2025. The National Capital Region (NCR) has seen a slight decline in affordability, with the EMI-to-income ratio climbing to 28 per cent. Despite this deterioration, the region remains within acceptable limits for buyers. The rise in property prices across the NCR is largely due to strong demand. Urbanisation, limited land availability, and infrastructure development have pushed prices upward. Even with lower home loan interest rates, affordability has taken a hit as a result.

The latest data highlights a mixed picture for homebuyers in 2025. Mumbai’s improved affordability contrasts with Delhi’s ongoing challenges, while Ahmedabad, Pune, and Kolkata offer more budget-friendly options. These trends will likely shape housing decisions in the coming year.