Ahmedabad Tops India's Home Affordability Chart 2026: EMI-to-Income Ratio Falls to 23%

Planning to buy a home in 2026? One number matter most: how much of your income goes toward your EMI. Knight Frank India just answered that question for eight major cities. Ahmedabad comes out on top. 

Ahmedabad homebuyers now spend just 23% of their income on EMIs. That's the lowest in the country. Mumbai and Delhi-NCR buyers, on the other hand, still spend over half their income on loan payments. 

Here's what the report found, city by city. And what does it mean if you're planning to buy it? 

What is the Knight Frank Affordability Index?

The idea is simple. Knight Frank Checks how much of a household's income goes toward the EMI on an average home loan. This is the EMI-to-income ratio. 

A city counts as "affordable" when this ratio is 50% or lower. Go above that, and banks get nervous. There's just not enough income left for other expenses. 

To keep things fair, Knight Frank uses the same loan setup for every city: 

• 20-year loan term 

• 80% loan-to-value 

• Average local home loan rates 

• City-average prices, based on unsold housing stock 

Ahmedabad Leads: Why It's India's Most Affordable City

Ahmedabad's ratio is 23% for H1 2026. That's the best score of all eight cities. It's also well under the 50% danger line. 

This number hasn't changed since 2025. So, there's no sudden price shock hurting buyers here. 

Why does Ahmedabad keep winning this ranking? A few reasons: 

• Property prices stay moderate compared to other big metros. 

• The city offers a good supply of mid-sized homes. 

• Local incomes, backed by pharma, textiles, and manufacturing, have kept pace with prices. 

For Ahmedabad buyers, this means a real breathing room each month. Enough to consider a bigger home. Or simply save more money. 

City-Wise EMI-to-Income Ratio (H1 2026)

Why Mumbai and NCR Remain Out of Reach 

MMR is India's least affordable market. Its ratio is 69%. NCR follows close behind at 67%. Both are well past what banks see as safe. 

The reason is simple. Land costs are high. City cores are crowded. Base prices stay far above other cities, even with cheaper loans on offer. That's why more Mumbai and NCR buyers now look at redevelopment projects and satellite towns instead of the city core. 

RBI Rate Cuts Are Keeping EMIs in Check

Cheaper loans did most of the work this year. The RBI cut its repo rate by 125 basis points in total. Home loan rates now start near 7.1% for strong credit borrowers. 

The rate has been steady at 5.25% since February. The RBI paused again in June. It pointed to energy-price risks from West Asia and monsoon uncertainty as reasons to hold. 

This is why affordability stayed flat in most cities, even as prices kept rising. Knight Frank India Chairman Shishir Baijal said affordability drives housing demand. He noted that cheaper loans have kept home sales close to post-pandemic highs. 

Which Cities Got Less Affordable? 

Not every city held steady. Two saw affordability slip a bit compared to 2025: 

• Bengaluru: up from 34% to 35% 

• NCR: up from 66% to 67% 

The rest — Ahmedabad, Kolkata, Pune, Chennai, Hyderabad, and MMR — stayed the same. 

What This Means If You're Buying in Ahmedabad 

Three things to know if you're house-hunting in Ahmedabad right now: 

1. Lower EMI load. At 23%, you have far more room each month than buyers in Bengaluru, NCR, or Mumbai. 

2. Cheap loans, for now. Rates near 7.1% and a steady repo rate make this a fair time to borrow. 

3. No price shock. A flat ratio means prices and incomes are moving together, not apart. 

City averages don't tell the full story, though. Your own EMI depends on the locality, the builder, and your credit score. Check the real numbers before you commit. 

Housing Affordability Outlook for H2 2026

Knight Frank expects affordability to stay stable through H2 2026. Steady jobs, city growth, and rising incomes should support this. FY27 GDP growth is pegged at 6.6%. Inflation is forecast at 5.1%. The RBI is watching both closely. 

The main risks: fresh inflation pressure, or a global shock that pushes rates back up. Barring that, Ahmedabad should keep its lead as India's most affordable big city. 

Quick Takeaways 

• Ahmedabad is India's most affordable city to buy a home: 23% EMI-to-income ratio in H1 2026. 

• MMR (69%) and NCR (67%) are the only cities above the 50% affordability line. 

• RBI's 125 bps of rate cuts kept EMIs in check despite rising prices. 

• Bengaluru and NCR got slightly less affordable. Six other cities held steady. 

• The outlook for H2 2026 is stable. Inflation and global risk are the main threats. 

FAQs 

Which city is most affordable for buying a home in India right now?
Ahmedabad. Its EMI-to-income ratio is 23% in H1 2026 — the lowest of India's eight major cities. 

What EMI-to-income ratio counts as affordable?
50% or below. That's Knight Frank's benchmark. Above that, banks usually hesitate to approve the loan. 

Why is Mumbai so unaffordable for homebuyers?
High land costs and a crowded, supply-tight core push MMR's ratio to 69%. That's the highest in India. 

How have RBI rate cuts helped homebuyers?
A total of 125 bps in cuts brought home loan rates down to nearly 7.1% for strong credit profiles. This offset rising property prices. 

Is now a good time to buy in Ahmedabad?
Conditions look favorable: low EMI load, steady rates, and a flat affordability trend. Still, check the numbers for your specific property first. 

Looking to buy a home in Ahmedabad? With affordability on your side, now's a good time to start looking. At Savitar Realty, we help you compare verified residential projects, understand current pricing, and shortlist the right property for your budget — explore our latest listings at savitarrealty.com.