Lower home loan rates improve affordability in 7 of 8 cities: Knight Frank

Knight Frank's Affordability Index shows lower home loan rates improved affordability in seven of eight top cities in 2025, with Mumbai's EMI stress falling below 50 per cent

Real estate developers expect improved housing affordability to support sales momentum across major Indian cities, aided by lower home loan rates following RBI repo rate cuts. According to Knight Frank India’s Affordability Index, affordability improved in seven of eight top cities in 2025, even as residential sales (for 9M 2025) dipped marginally year-on-year.

 

Which cities are most affordable and what changed for Mumbai and NCR? 

Ahmedabad remains the most affordable market, followed by Pune and Kolkata, while Mumbai saw a notable improvement, breaching the 50 per cent stress threshold for the first time. The National Capital Region (NCR) was the