Homebuyer affordability improves in 2025 as interest rates fall: Knight Frank India
Ahmedabad emerged as the most affordable market with an EMI-to-income ratio of 18%, followed by Pune and Kolkata at 22%.
Ahmedabad emerged as the most affordable market with an EMI-to-income ratio of 18%, followed by Pune and Kolkata at 22%.
The market has witnessed a significant turnaround since March 2023, with occupancy increasing by 600 basis points to reach 78.6% by September 2025.
With borrowing costs remaining steady, improved connectivity through expanding expressway and metro networks, and rising buyer confidence, the real estate sector is well positioned for steady, quality-oriented growth through 2026 and beyond.
While occupancy rates are likely to be supported by business events and leisure travel, potential economic slowdowns could dampen them if trade wars were to prolong.
A new Colliers report shows that average affordability levels across most Tier I cities have improved substantially since 2010.
The luxury housing market continues to outshine all other residential segments across India’s top seven cities, recording a striking 40% price appreciation since 2022—far higher than the 26% rise seen in affordable homes.
From opulent villas and high-rise penthouses to global resorts and vibrant entertainment districts, Jewar is carving out a future where luxury and commerce thrive side by side.
Bengaluru witnessed the highest net office leasing of approx. 9.95 Mn sq. ft., followed closely by Delhi-NCR with net office leasing of approx. 8.2 Mn sq. ft. and MMR with approx. 6.6 Mn sq. ft.
Homes priced at ₹1 crore and above recorded a 4% annual growth, led by the ₹1.5–3 crore segment, which saw demand surge by around 10% compared to the same period last year.
Delhi-NCR and Bengaluru maintained their leadership positions in the third quarter, each capturing nearly identical shares of 24.6% of total net absorption during Q3.