New Delhi — Strong income growth over the past 15 years has sharply boosted housing affordability in India, with the country’s price-to-income ratio falling from 88.5 in 2010 to 45.3 in 2025, according to a report released Wednesday.
Data compiled by Colliers India shows that average household incomes have increased more than fourfold during this period, rising at roughly 10 percent annually. In contrast, housing prices have grown at a slower pace of 5–7 percent a year. The widening gap between earnings and home prices has significantly strengthened the ability of Indian families to purchase property across major urban markets.
The report noted that this improvement has taken place despite periods of turbulence in the residential sector caused by policy shifts, regulatory changes and economic disruptions. Over the last two decades, the real estate market has weathered events including the rollout of PMAY, demonetisation, the introduction of RERA, the NBFC liquidity crisis, the SWAMIH fund initiative and the implementation of GST.
Even through these phases, housing sales have stayed resilient. In the post-pandemic years, annual sales in major cities have touched 300,000 to 400,000 units, supported by improved infrastructure, favourable interest-rate conditions, rising incomes and better affordability.
Experts say demand strength can be attributed largely to income growth outpacing the rise in housing costs. Badal Yagnik, CEO and MD of Colliers India, said buyers have been able to keep pace even as raw material costs have pushed up prices. “While raw material costs have pushed up housing prices in recent years, the faster rise in incomes has helped buyers keep pace,” he said.
However, affordability remains uneven across markets. Local conditions — including supply dynamics, pricing strategies and buyer profiles — continue to shape how affordability translates into real sales momentum. Developers have also been offering products across a wide range of price points to appeal to India’s highly price-sensitive homebuyers.
Across the eight major Tier I cities, affordability has improved sharply since 2010, with Ahmedabad and Hyderabad emerging among the most affordable major markets. The report added that GST rate rationalisation on construction materials could further lift sentiment, particularly in the affordable and mid-income housing segments. (Source: IANS)
