India’s Housing Affordability Has Doubled Since 2010 as Incomes Rise Faster Than Property Prices: Colliers

India’s residential market has weathered multiple policy shifts and economic disruptions over the past decade, including PMAY, demonetisation, RERA, the NBFC crisis, SWAMIH, and GST, yet housing demand has remained consistently strong. In fact, sales surged in the post-pandemic period, stabilising at 0.3–0.4 million units annually, supported by rapid infrastructure development, better affordability, favourable monetary policies, and rising household incomes.

Since 2010, average income levels in India have grown more than fourfold, expanding at a CAGR of nearly 10%. During the same period, average housing prices have risen at a slower pace of 5–7% annually. As a result, the country’s average Price-to-Income (P/I) ratio has improved significantly, from 88.5 in 2010 to 45.3 in 2025, indicating a sharp rise in homebuying affordability.

However, while national affordability trends look positive, conditions vary widely across cities and micro-markets. Local demand–supply dynamics, project pricing, and the financial strength of target buyers all shape true affordability on the ground. Moreover, improved affordability does not automatically translate into broad-based sales. Developers continue to tailor offerings and pricing strategies based on the high price sensitivity of Indian homebuyers, ensuring product segmentation aligns with market-specific demand.

“Housing sales across major Indian cities continue to remain strong, led by demand traction, favourable interest rates, and supported by a healthy increase in income levels over the last few years. While concerns over rising raw material costs continue to loom, pushing the prices upward, average income levels have increased at a higher rate compared to the average rise in property prices across most major markets. Looking ahead, steady growth in income levels coupled with likely softening of interest rates amidst low inflation, will continue to boost average housing affordability levels and support the residential market across major cities in the near-term,” said Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India.