Why 2025 may be the best year to buy a home and how rising incomes are helping

New Delhi: At a time when millions of Indians dream of owning a home, a new report brings encouraging news: rapidly rising incomes are making homes far more affordable across the country, even as property prices remain comparatively stable.

According to real estate consultancy Colliers India, the country’s price-to-income ratio — a key indicator of housing affordability — has fallen dramatically from 88.5 in 2010 to 45.3 in 2025. In simpler terms, Indians today need far fewer years of income to buy a home than they did 15 years ago.

What this means for the public

• Buying a house is now much more achievable due to faster income growth.
• Middle-class families benefit the most, as salaries have grown over four times since 2010.
• Home loan burdens are easing, with better affordability and supportive interest rates.
• More property choices across budget segments, especially in affordable and mid-income categories.

Colliers pointed out that while average incomes have grown at 10% each year, housing prices have increased at only 5–7%, widening the affordability gap and putting home ownership within reach for more Indians.

This trend has held strong despite disruptions such as demonetisation, RERA implementation, the NBFC crisis, GST rollout and pandemic-related shocks. In fact, sales in major cities have surged to 3–4 lakh units annually post-pandemic, driven by better infrastructure, improved affordability, and rising confidence among buyers.

Badal Yagnik, CEO & MD of Colliers India, said demand remains strong because higher incomes are helping buyers absorb recent price increases triggered by raw material costs. “Affordability has improved as income levels rise faster than housing prices,” he added.

Which cities are benefiting the most?

• Ahmedabad and Hyderabad now rank among the most affordable Tier-I housing markets.
• Across all eight major cities, affordability has improved sharply since 2010.

Local factors—including supply, pricing strategies and buyer profiles—continue to shape demand.

More relief may be coming

The report says that GST rate rationalisation on key construction materials, if implemented, could bring further price relief, especially for first-time buyers and mid-income families.

For millions aiming to upgrade from rented houses or purchase their first home, 2025 is shaping up to be one of the strongest windows of opportunity in recent years.