The affordability of homes in the country’s top six cities is expected to stabilise between 2026 to 2028 on the back of rising household incomes and favourable policy interventions, according to the CBRE Housing Affordability Index by real estate consultancy CBRE South Asia Private Ltd.
It signalled that for the first time since 2021, household income growth is now anticipated to outpace property price appreciation, easing the homebuying burden for a wide range of Indian households. This growth is likely to align with the country’s transition to upper-middle-income status by 2030 and policy momentum amid geopolitical uncertainties.
The consultancy highlighted these findings in its India Residential Market Outlook 2026, evaluating the EMI-to-household income ratio across six major cities and three income brackets from 2021 to 2028.
“India’s housing market is at a structural inflection point,” said Anshuman Magazine, Chairman and CEO, India, South-East Asia, MEA, of CBRE. “The convergence of monetary easing, moderating price appreciation, and rising household disposable incomes is expected to cushion homebuying conditions across cities and income segments. The sector could witness a divergence in sales value-over-volume dynamics in 2026.”
The report tracked affordability across three annual household income brackets: ₹40 lakh, ₹75 lakh, and ₹1 crore, across Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai and Pune, mapping the EMI burden against evolving aspirations of homebuyers from 2021 to 2028.
It recorded a consistent upward movement in the EMI-to-income ratio across all three cohorts between 2021 and 2024. This can be attributed to the Reserve Bank of India’s interest rate-tightening cycle and capital value growth outpacing household income gains.
However, the index signals a definitive pivot from 2026 onwards. Across all three income cohorts, the EMI-to-income ratio is projected to plateau between 2026 and 2028, pointing to a measurable stabilisation in homebuying affordability through the forecast period. This stabilising trajectory is reflected across distinct buyer segments and micro-markets, it said.
“The market is anchored by a resilient growth baseline and disciplined supply-demand parity. The anticipated stabilisation in affordability over the next three years will be a vital catalyst in sustaining this momentum and informing strategic capital objectives across the ecosystem,” said Gaurav Kumar, managing director and co-head, Capital Markets and Residential Services, India, CBRE.
CBRE Research noted that India’s residential sector recorded new launches and sales exceeding 270,000 units each in 2025. The high-end segment captured about 27% share of total sales, eclipsing the mid-end bracket for the first time. Premium and luxury sales grew over 30% year-on-year. The supply, at the same time, grew 38% Y-o-Y with approximately 52,000 luxury units launched during the year. Importantly, while sales volume moderated by approximately 8%, sales value grew approximately 15%. It underscores the market’s structural shift toward higher-quality, higher-ticket inventory.
Affordable housing: Policy recalibration needed
CBRE Research also flagged a divergence in the affordable housing story, the sub- ₹45 lakh segment remains constrained by elevated input costs and the withdrawal of targeted fiscal incentives.
A strategic government-led recalibration, specifically through reassessing price and area ceilings and reinstating targeted incentives for developers and end-users, may help restore the segment’s market share to pre-COVID levels of 25–30%. According to the report, this could potentially add around 60,000 new annual units to the pipeline.
