Delhi-NCR Housing Prices Surge Despite Lower Home Loan Rates

Housing prices in Delhi-NCR have risen sharply, impacting affordability despite lower interest rates on home loans. According to Knight Frank, affordability in Mumbai has improved significantly. The Knight Frank Affordability Index shows that households in different cities spend various proportions of their income on EMIs.

A recent surge in housing prices across Delhi-NCR is adversely affecting the affordability of buying homes, despite reduced interest rates on home loans, according to a report by real estate consultant Knight Frank India.

The consultancy's Affordability Index reveals that although Mumbai has seen a significant improvement in housing affordability this year, Delhi-NCR continues to experience challenges. The index measures the percentage of income a household needs to allocate monthly for repaying a home loan.

Ahmedabad emerges as the most affordable housing market among the top eight cities, with an 18 per cent income allocation for EMIs, while Pune and Kolkata follow at 22 per cent. In contrast, Mumbai's EMI-to-income ratio has improved to 47 per cent, yet Delhi-NCR sees a marginal affordability decline to 28 per cent for 2025.

(With inputs from agencies.)