Top 3 Affordable Metro Cities in India to Buy a House in 2025
Discover the most affordable metro cities in India to buy a home in 2025, based on the latest real estate affordability statistics and market trends.
Real EstateAffordable HousingMetro CitiesHome BuyingIndiaReal EstateAug 24, 2025
Housing affordability is typically defined by the ratio of Equated Monthly Installments (EMI) on a home loan to household income. The lower the EMI-to-income ratio, the more affordable it is. Ideally, this ratio should be below 40%, and anything over 50% is considered unaffordable for the typical middle-class household. The Reserve Bank of India’s repo rate cuts have helped lower home loan EMIs, improving monthly affordability. However, property price changes, the local economy, employment, and infrastructure projects also significantly influence affordability at the city level.
1. Ahmedabad
At the top of the list is Ahmedabad, which is the most affordable metro city in which to purchase a home in 2025. According to Knight Frank India’s Affordability Index, a median homebuyer in Ahmedabad averages a home loan EMI equal to just 18% of their average monthly income, well below the 40% threshold. Ahmedabad’s affordability can be attributed to several factors. Property prices are lower compared to Pune or Kolkata, and the city offers a robust job market, particularly in the gas, oil, and electricity sectors. Additionally, the low cost of living and high levels of future opportunities brought by infrastructure projects, such as the re-establishment of one of India’s first metro systems, enhance the city’s appeal.
Ahmedabad is particularly attractive to:
- First-time homebuyers and middle-class households
- Investors interested in long-term appreciation with steady economic growth
- Buyers concerned with cultural heritage and urban lifestyle
2. Pune
Next on the list is the cosmopolitan city of Pune, with an EMI-to-income ratio of 22%. Despite rapid urbanization and economic growth, Pune remains relatively affordable, largely due to its strong education and IT centers, manufacturing facilities, and the expansion of metro rail projects. Popular residential growth corridors in Pune include Hinjewadi, Wagholi, Kharadi, and Ravet, all of which are experiencing urban development and improved connectivity and quality of life. Pune is highly desirable to both professional buyers and families looking for a well-balanced work-life environment.
3. Kolkata
Kolkata is another excellent option for affordable housing, with an EMI ratio of 25-26%. The city offers big houses at relatively cheaper prices compared to other metros, making it a great value for money. While infrastructure development is slower compared to cities like Bengaluru or Hyderabad, Kolkata’s strong cultural heritage, developed neighborhoods, and relatively cheaper base prices make it a good option for budget buyers.
While urban areas such as Bengaluru, Hyderabad, and Chennai exhibit moderate affordability, cities like Ahmedabad, Pune, and Kolkata stand out as the best choices for those looking to buy a home in 2025. These cities offer a combination of affordability, economic growth, and quality of life, making them ideal for both first-time homebuyers and investors.
Frequently Asked Questions
What is the EMI-to-income ratio for affordable housing?
The EMI-to-income ratio for affordable housing should ideally be below 40%, with anything over 50% considered unaffordable for the typical middle-class household.
Why is Ahmedabad the most affordable metro city for homebuyers in 2025?
Ahmedabad is the most affordable metro city in 2025 due to lower property prices, a robust job market, low cost of living, and significant infrastructure projects like the metro system.
What are the popular residential areas in Pune?
Popular residential areas in Pune include Hinjewadi, Wagholi, Kharadi, and Ravet, all of which are experiencing urban development and improved connectivity.
What makes Kolkata an attractive option for affordable housing?
Kolkata is attractive for affordable housing due to its relatively cheaper base prices, strong cultural heritage, developed neighborhoods, and slower infrastructure development compared to other metros.
What factors influence housing affordability in Indian metros?
Factors influencing housing affordability in Indian metros include property price changes, the local economy, employment opportunities, and infrastructure projects.
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