Housing Affordability to Stabilize by 2026, But War Concerns Loom

• Housing affordability in top Indian cities is expected to stabilize between 2026 and 2028 due to favorable interest rates and rising household incomes.
• CBRE Housing Affordability Index indicates household income growth will outpace property price appreciation for the first time since 2021.
• The EMI-to-income ratio, which rose from 2021-2024, is projected to plateau between 2026-2028, signaling measurable stabilization.
• Despite improving affordability, the ongoing West Asia conflict introduces uncertainty, potentially impacting inflation, interest rates, and developer sentiment.
• Housing sales in top 7 cities declined 7% QoQ in Q1 2026, falling below 1 lakh units after 18 quarters, though Bengaluru continues to outperform.