Indian Housing Market Braces for Affordability Stabilization Amid Income Growth

Indian housing affordability is expected to stabilize as household income growth surpasses property price increases. CBRE's Housing Affordability Index indicates a plateau in the EMI-to-income ratio until 2028, reducing financial strain on homebuyers. This trend reflects India's shift toward upper-middle-income status by 2030.

In a significant development for the Indian housing market, affordability is set to stabilize due to household income growth outpacing property price rises for the first time since 2021. According to the CBRE Housing Affordability Index, the crucial EMI-to-income ratio will plateau by 2028, alleviating financial pressure on homebuyers across major urban centers.

Anshuman Magazine, Chairman & CEO of CBRE India, remarked on the structural inflection point, noting that monetary easing, moderating price appreciation, and rising disposable incomes will improve homebuying conditions. CBRE anticipates variations in sales value-over-volume dynamics through 2026.

The consultancy's review of the residential market reveals new launches and sales exceeding 270,000 units in 2025. Despite a slight moderation in overall sales volume, the premium and luxury segments grew by over 30 percent, highlighting a shift toward higher-priced inventory. Meanwhile, affordable housing remains constrained due to high input costs, with potential government intervention needed to restore market share.

(With inputs from agencies.)