Planning to Buy a Home in 2025? These Indian Cities Offer the Lowest EMIs

Buying a home in India is a major financial decision, and affordability remains one of the most important factors for homebuyers. If you’re planning to invest in property this year, some cities are far more affordable than others in terms of monthly EMIs and income-to-loan ratio.

A recent analysis by property consultancy Knight Frank India has revealed the most affordable Indian cities to buy a home in 2025, based on EMI-to-income ratios. The study also highlights how much of your monthly income would typically go toward paying home loan EMIs in these cities.

Let’s take a look at the key findings.

What is the EMI-to-Income Ratio?

The EMI-to-income ratio is a straightforward method for assessing housing affordability. It calculates what percentage of an average household’s monthly income goes toward repaying the home loan EMI. A lower ratio means more affordability and less financial stress for the buyer.

Top 5 Most Affordable Cities to Buy a Home in 2025

According to the data, Ahmedabad is currently the most affordable city to own a home in India, followed by Pune, Kolkata, and Bengaluru. Here’s how they rank:

 

 

A ratio below 30% is generally considered healthy, indicating that housing costs are well within reach of the average household.

Why Ahmedabad Tops the List

Ahmedabad leads the list due to:

1. Lower property prices compared to metros
2. Balanced income levels
3. Slower but steady appreciation rates
4. Lower home loan EMIs for standard-size homes

This makes it an attractive destination for first-time homebuyers and salaried professionals looking for value-for-money property investments.

Impact of Home Loan Rates on Affordability

Though home loan interest rates in India have remained stable or slightly elevated in early 2025, they continue to influence EMI affordability. A city’s average property price, combined with interest rates, determines how comfortably a homebuyer can repay a loan.

Even a small difference in property prices can translate into significant changes in EMIs, especially over 15 to 20 years.

What This Means for You as a Buyer

If you’re planning to buy a home in 2025, consider cities where your EMI won’t overburden your monthly income. Cities like Ahmedabad, Pune, and Kolkata offer a strong combination of:

1. Affordable housing
2. Growing infrastructure
3. Rising job opportunities

On the other hand, if you’re buying in Mumbai or Hyderabad, you’ll need a higher income to comfortably manage EMIs due to higher property prices and stretched affordability. Affordability is a critical factor when choosing where to buy your home; however, it is not the only one. We suggest that you consider all the factors before zeroing in on the city of your dream home.