Lower Home Loan Rates Boost Housing Affordability in 2025
NEW DELHI: A reduction in home loan interest rates has enhanced housing affordability for buyers in seven of India’s eight major residential markets by 2025. According to Knight Frank India’s latest Affordability Index, Ahmedabad, Pune, and Kolkata rank as the most affordable cities. The index assesses the percentage of household income allocated for home loan EMIs, revealing that Ahmedabad has the most favorable market with an EMI-to-income ratio of 18%. Both Pune and Kolkata follow closely with a 22% ratio, indicating improved affordability. In Mumbai, India’s priciest housing market, affordability also saw a significant boost, with the EMI-to-income ratio decreasing…