Kolkata’s real estate market is witnessing improved home affordability following recent interest rate cuts, making the city one of the most accessible housing markets among India’s major metros. Lower borrowing costs have eased monthly home loan repayments, encouraging buyers to enter the residential market with greater confidence.
According to industry data, Kolkata’s affordability index, which measures the share of household income spent on home loan EMIs is estimated at around 22 per cent. This places the city among the most affordable urban housing markets in the country, significantly ahead of high-cost cities such as Mumbai, Delhi-NCR, Bengaluru and Hyderabad.
The improvement in affordability is largely driven by reduced home loan interest rates after cumulative repo rate cuts by the Reserve Bank of India. These reductions have translated into lower EMIs, particularly benefiting first-time homebuyers and those in the affordable and mid-income housing segments. As a result, buyers who were previously hesitant due to high borrowing costs are now reconsidering purchase decisions.
Kolkata’s relatively stable property prices, combined with steady income levels, have helped maintain a favourable balance between home values and earning capacity. This has supported sustained residential demand and kept sales activity near recent highs.
Developers and market experts note that buyer sentiment remains positive, especially in interest-rate-sensitive segments. With inflation showing signs of moderation and lending conditions remaining supportive, the city’s housing market is expected to maintain its affordability advantage in the coming year, reinforcing Kolkata’s position as a value-driven destination for homebuyers.
