Wondering how much you need to save to buy a home in India today and which cities still offer a shot at affordability?
These are the questions on the minds of thousands of Indian families in 2025, as rising property prices clash with stagnant wage growth in many parts of the country. According to the latest housing affordability data, cities like Chennai, Kolkata, and Ahmedabad remain within reach for middle-income buyers, while metros such as Mumbai, Delhi-NCR, and Bengaluru have become increasingly out of reach.
Let’s start with the numbers. A standard home loan typically requires a down payment of 10% to 20% of the property’s value. But financial advisors recommend planning for at least 30% to cover additional expenses—like registration fees, stamp duty, legal charges, and GST, where applicable. That means if you're eyeing a Rs50 lakh home, you should aim to save around Rs15 lakh before stepping into the market.
But, how long would that take? If you save Rs25,000 a month—either in a recurring deposit, fixed deposit, or a low-risk mutual fund—you could reach your goal in five years. It’s not fast, but it’s realistic. And more importantly, it ensures you won’t over-leverage yourself with a high home loan burden.
Affordability is also about what happens after the purchase. Your monthly home loan EMI shouldn’t exceed 40% of your net monthly income, according to most lenders. If it does, you're putting other financial priorities, like your emergency fund, retirement planning, and kids' education, at risk.
City Rankings By Price-To-Income Ratio
| City | Affordability Rank | House Price-to-Income Ratio | Affordability Summary |
|
Chennai |
Most Affordable |
5 |
Despite being a tech hub, property prices have grown moderately, keeping housing accessible. |
|
Ahmedabad |
Most Affordable |
~4.8 |
Strong infrastructure growth supports value, especially in emerging residential areas. |
|
Kolkata |
Most Affordable |
~5.1 (approx.) |
Offers low property prices relative to income, with a steady market and a wide housing option. |
|
Mumbai |
Least Affordable |
11 |
Even small homes in central locations are priced well beyond the reach of mid-income families. |
|
Delhi-NCR |
Least Affordable |
9.5 (approx.) |
Delhi and Gurgaon remain unaffordable for most first-time buyers. |
|
Bengaluru |
Least Affordable |
7 |
Once affordable, now strained by rising demand near tech hubs. |
Affording a home today is less about timing the market and more about disciplined financial planning. With high property prices and rising interest rates, spontaneous purchases are a financial risk. Instead, prospective buyers should adopt a five-year plan: start saving now, monitor city-level affordability data, and explore housing options beyond central city zones.
With the right planning, cities like Chennai and Ahmedabad still offer a realistic path to homeownership—but in Mumbai or Delhi, you'd better come with deep pockets and long-term financial commitment.
Second-tier cities and well-connected suburbs are often overlooked but present smart alternatives for value-conscious buyers. Places like Jaipur, Indore, and Surat are seeing infrastructure booms and offer homes at price-to-income ratios well below 5.
