Ahmedabad continues to stand out as the most affordable major city for housing in India, a position it has held since 2019, according to Knight Frank India’s latest Affordability Index. This report highlights the city’s low EMI-to-income ratio, where residents allocate just 21% of their monthly earnings towards home loan repayments. Compared to other Indian cities, this figure gives Ahmedabad a significant edge, especially with Pune and Kolkata trailing with a 24% ratio each. For prospective homebuyers, this translates to a lower financial burden, making Ahmedabad a prime destination for affordable housing investments.
The index reveals growing disparities across India’s urban real estate markets, with Ahmedabad remaining a unique outlier for affordability. This distinction is crucial, not only for homebuyers but also for real estate investors seeking to enter a stable market. Ahmedabad’s steady housing prices offer a more predictable environment, free from the inflationary pressures affecting cities like Mumbai and Delhi. This consistent affordability ensures that the city attracts a diverse range of buyers, including those from the middle-income segment, which is pivotal in sustaining demand for affordable homes.
From a sustainability perspective, Ahmedabad’s housing market offers an intriguing case. Affordable housing in a stable economic climate can foster sustainable growth. Unlike cities where inflated property costs drive rapid urban expansion, often leading to unsustainable development, Ahmedabad’s affordability could encourage more balanced and eco-friendly urban growth. As more affordable housing projects rise, the city can focus on incorporating green building practices and maintaining a sustainable urban infrastructure, a factor likely to influence future policy decisions.
