Ahmedabad: Ahmedabad has retained its position as India’s most affordable residential property market during the first half of 2026, reinforcing its reputation as a city where homeownership remains accessible despite rising property prices. The latest housing affordability assessment indicates that lower borrowing costs have helped offset higher residential values, supporting steady demand in one of the country’s fastest-growing urban centres.
According to a recent market assessment by real estate consultancy Knight Frank India, the Ahmedabad housing affordability ratio stands at 23 per cent, meaning an average homebuyer spends less than one-quarter of household income on monthly home loan repayments. This places Ahmedabad ahead of other major cities, including Kolkata and Pune, while remaining well below the widely accepted affordability threshold of 50 per cent.The findings suggest that recent reductions in lending rates by the Reserve Bank of India have played an important role in sustaining residential demand. Although housing prices have continued to appreciate across urban India, lower financing costs have eased the impact on homebuyers, allowing affordability to remain relatively stable across most metropolitan markets.
Urban economists note that Ahmedabad’s strong affordability is supported by a combination of comparatively moderate residential prices, expanding employment opportunities and continued infrastructure investment. Large-scale transport projects, industrial growth corridors and improving civic infrastructure have strengthened the city’s long-term attractiveness while avoiding the sharp housing cost escalation seen in several larger metropolitan regions. The report contrasts Ahmedabad’s position with more expensive housing markets such as the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR), where household income requirements for home loan repayments remain above sustainable affordability benchmarks despite recent interest rate reductions. This divergence reflects the increasing influence of property price growth on urban housing accessibility.
For developers and policymakers, maintaining Ahmedabad housing affordability has broader economic significance. Affordable homeownership supports workforce mobility, attracts investment and contributes to more balanced urban expansion. Planning experts emphasise that continued land supply, efficient transport infrastructure and timely housing approvals will be essential to preserving affordability as the city grows. The residential market is also benefiting from structural demand driven by urbanisation, demographic growth and rising household aspirations. Stable employment conditions and relatively predictable financing costs continue to underpin buyer confidence, even as global economic uncertainty and inflation remain key considerations for the property sector. Looking ahead, analysts believe future affordability will depend less on additional interest rate cuts and more on sustained income growth, responsible urban planning and balanced housing supply. If these conditions are maintained, Ahmedabad is likely to remain among India’s most competitive residential markets, supporting inclusive urban development while accommodating long-term population and economic growth.
Also Read:Hyderabad Raidurg Land Dispute Reaches Settlement
Ahmedabad Retains Lead In Housing Affordability
