To buy a house, this is the most affordable city in the country, EMI goes to EMI, only so much of earnings

reserve Bank of India (RBI) This year has cut the repo rate by 1.00 percent. The home loan has also become cheaper by cutting the repo rate, which has given a lot of relief to crores of people of the country. Due to cheap home loans, people are now paying less money in the form of interest and their EMI has reduced. A recent report by Knight Frank India states that the repo rate cut has improved the ability to buy houses in 7 out of 8 major cities in India in the first 6 months of 2025. According to the report, Ahmedabad city of Gujarat is the most affordable housing market in 8 major cities of the country.

How is the most affordable housing market calculation

The most affordable housing market is calculated with the help of EMI/Income Resho. Through EMI/Income Resho, it is known how much EMI has to be given on how much monthly income a family has to pay. For example, if this ratio comes 40% in a city, it means that the families of that city have to keep 40% of their monthly income separate for the EMI of the house. According to the index, more than 50% EMI/income ratio is not considered affordable.

Where is the country’s most expensive housing market

Ahmedabad is the most affordable city in the country on the basis of EMI/Income Ratio. The EMI/Income Resho of Ahmedabad is 18 percent in the first 6 months of 2025. That is, in Ahmedabad, a family has to give only 18 percent of their monthly income for the EMI of the house. Mumbai is the most expensive city in the country in this case. Mumbai’s EMI/Income Resho is the highest 48 percent. Apart from these, the EMI/income ratio of Pune is 22 percent, 23 percent of Kolkata, 28 percent of Delhi-NCR and 30 percent in Hyderabad.

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