News: CBRE Index: Home Affordability to Steady Through 2028-26-03-2026
Household incomes are expected to grow faster than property prices for the first time since 2021, which should steady housing affordability in India’s top six cities between 2026 and 2028, according to the CBRE Housing Affordability Index from real estate consultancy CBRE South Asia Private Ltd.
The findings form part of the firm’s India Residential Market Outlook 2026. The index measures the EMI-to-household income ratio from 2021 to 2028 for three annual household income brackets, Rs 40 lakh, Rs 75 lakh and Rs 1 crore, across Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai and Pune.
Between 2021 and 2024 the ratio rose consistently for all three cohorts, which the report attributed to the Reserve Bank of India’s rate-tightening cycle and capital values growing faster than incomes. From 2026 onwards it is projected to plateau across all three, pointing to stabilisation through the forecast period. The report tied this to rising incomes, favourable policy interventions and the country’s expected move to upper-middle-income status by 2030.
Anshuman Magazine, Chairman and CEO, India, South-East Asia, MEA, of CBRE, said the housing market was at a "structural inflection point", with monetary easing, moderating price appreciation and rising disposable incomes expected to cushion homebuying conditions. He said 2026 could see a divergence between sales value and volume.
Gaurav Kumar, managing director and co-head, Capital Markets and Residential Services, India, CBRE, said the anticipated stabilisation over the next three years would help sustain market momentum.
CBRE Research said new launches and sales each exceeded 270,000 units in 2025. The high-end segment took about 27% of sales, overtaking the mid-end bracket for the first time. Premium and luxury sales grew over 30% year-on-year, and supply rose 38% with approximately 52,000 luxury units launched. Sales volume moderated by approximately 8% while sales value grew approximately 15%.
On affordable housing, the report said reassessing price and area ceilings and reinstating targeted incentives for developers and end-users may restore the segment’s share to pre-COVID levels of 25-30%, potentially adding around 60,000 new units a year.
