Ahmedabad Retains Lead in Housing Affordability

Ahmedabad continues to hold its position as the most affordable major city in India for housing, maintaining this status since 2019, according to the latest Affordability Index released by real estate consultancy Knight Frank India. This index assesses housing affordability based on the proportion of income required to service an equated monthly instalment (EMI) on a home loan.

The report indicates that in Ahmedabad, residents allocate just 21% of their income towards repaying their home loans, demonstrating the city’s relatively lower housing costs compared to other major urban centres. This figure places Ahmedabad at the top of the affordability rankings, significantly below that of other cities.

Following Ahmedabad, Pune and Kolkata are ranked with an EMI-to-income ratio of 24% each, reflecting a higher cost burden for homeowners in these cities. The Affordability Index underscores a growing disparity in housing costs across different Indian cities, with Ahmedabad standing out for its comparatively lower financial strain on residents. This distinction is particularly relevant for prospective homebuyers and investors, as it highlights Ahmedabad’s attractive positioning in the real estate market. The city’s continued affordability is likely to drive interest from those seeking to maximise their housing investment while managing financial commitments more effectively.

The report’s findings also reflect broader trends in the Indian real estate sector, where housing affordability remains a critical consideration for many households. As other major cities experience rising costs, Ahmedabad’s stable affordability is poised to enhance its appeal, potentially influencing future real estate investment and development strategies. Overall, Ahmedabad’s status as the most affordable major city for housing reinforces its competitive edge in the real estate landscape, providing a key advantage in attracting homebuyers and investors looking for cost-effective options.