New Delhi, Mar 26 (TNT): Housing affordability across India’s top cities is expected to stabilise between 2026 and 2028, driven by rising household incomes and supportive policy measures, according to a report by CBRE South Asia Private Limited.
The CBRE Housing Affordability Index, released as part of its India Residential Market Outlook 2026, noted that for the first time since 2021, household income growth is projected to outpace property price appreciation, easing the financial burden on homebuyers.
The report analysed the EMI-to-household income ratio across six major cities—Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai and Pune—covering three income brackets from 2021 to 2028.
It observed that while affordability worsened between 2021 and 2024 due to rising property prices and interest rates, a clear shift is expected from 2026 onwards.
“India’s housing market is at a structural inflection point,” said Anshuman Magazine, Chairman and CEO (India, South-East Asia, MEA), CBRE, adding that moderating price growth, monetary easing and rising incomes are expected to improve homebuying conditions.
The index projects that the EMI-to-income ratio will plateau across all income groups between 2026 and 2028, signalling stabilisation in affordability across cities and segments.
CBRE also highlighted strong momentum in the residential market, with over 2.7 lakh units launched and sold in 2025.
Premium and luxury housing segments witnessed over 30 per cent year-on-year growth, while sales value rose by around 15 per cent despite an 8 per cent dip in sales volume, the report revealed.
However, the report flagged challenges in the affordable housing segment (below Rs 45 lakh), citing high input costs and reduced fiscal incentives.
It suggested policy recalibration, including revised pricing thresholds and renewed incentives, to revive the segment and potentially add around 60,000 units annually.
Overall, the report indicates a transition towards a more balanced housing market, with improved affordability expected to support sustained growth in the coming years.
TNT KS
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