If home loan interest rates are low, it is generally expected that buying a house will become easier. But the picture in Delhi-NCR seems completely opposite. Despite cheap loans, rising house prices have put huge pressure on the pockets of common people. The latest report shows that Delhi-NCR is the only major residential market in the country, where the ability of people to buy houses has declined this year.
According to real estate consultant Knight Frank India, there has been a sharp rise in the prices of residential properties in Delhi-NCR. Increased activity, especially in the premium and luxury segments, has pushed up the average house price. This has had a direct impact on middle class buyers, for whom paying EMIs has become more challenging than before.
What is the reason?
Knight Frank’s Housing Affordability Index measures what percentage of its income the average household in a city has to spend to pay home EMIs. According to the report, this ratio in Delhi-NCR has increased to 28% in 2025, whereas last year it was 27%. Even though this figure is currently below the ‘comfort level’ of 40%, the steady increase indicates that the situation is gradually becoming tough for common buyers.
What do experts say?
Experts say that generally if the ratio of EMI to income goes above 50%, then buying a house is considered inconvenient. This level has not yet reached Delhi-NCR, but the speed at which property prices are increasing is definitely a cause for concern. According to Knight Frank, NCR has been the only major market where affordability has declined this year, while the situation has improved in cities like Mumbai.
home sales decreased
Meanwhile, another important news related to the country’s real estate market has come to light. According to real estate consultant PropEquity, home sales in the top nine cities of the country may decline by 16% in the October-December quarter due to reduced demand and new supply. It is estimated that sales during this period will decline to 98,019 units, which will be the lowest level since July-September 2021.
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