Recent home loan interest rate cuts have kept housing affordable in six of India’s eight major cities.
NEW DELHI
Buying a home remains affordable in six out of eight major Indian cities, thanks to recent cuts in loan interest rates. New reports reveals that lower borrowing costs are helping families manage their monthly home loan payments easily.
Ahmedabad has emerged as the most budget-friendly city, where families spend just 23 percent of their income on home loans. Kolkata and Pune follow closely as highly affordable options. However, Mumbai and Delhi-NCR remain expensive, with families spending well over half their monthly earnings on housing. Costs also rose slightly in Bengaluru and Delhi due to climbing property prices.
The real estate market has been on a rollercoaster ride lately. During the pandemic, interest rates dropped drastically, making homes cheap. Rates then spiked when inflation hit, making homes expensive again. Fortunately, recent rate cuts by the Reserve Bank of India have restored balance, keeping the market steady and active.
Experts note that while rising property prices have slowed down affordability gains, the situation remains positive. Strong job growth, steady salaries, and helpful bank loans are keeping the dream of homeownership alive for many. Looking ahead, stable incomes will be key to keeping Indian housing affordable for everyone.