India Housing Affordability Stabilizes
Analysis based on 7 articles · First reported Mar 26, 2026 · Last updated Mar 26, 2026
The report by CBRE Group indicates a positive outlook for India's housing market, with improved affordability expected to drive sustained momentum. This could lead to increased investment in the real estate and construction sectors, while also benefiting financial institutions involved in home loans.
CBRE Group's Housing Affordability Index predicts that India's housing market will stabilize between 2026 and 2028, as household income growth is expected to outpace property price appreciation for the first time since 2021. This shift, driven by monetary easing and moderating price growth, is anticipated to ease the financial burden on homebuyers across major cities like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, and Pune. The EMI-to-income ratio is projected to plateau across various income brackets, making homes more accessible. While the luxury housing segment saw significant growth in 2025, the affordable housing sector (under Rs 45 lakh) remains constrained due to high input costs and withdrawn fiscal incentives. CBRE Group suggests that policy recalibration, including revisiting price and area ceilings and restoring incentives, could revive this segment and add approximately 60,000 new units annually. This trend aligns with India's broader goal of achieving upper-middle-income status by 2030.
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