New Delhi, Dec 3 (NationPress) India has witnessed a remarkable increase in incomes, making homeownership increasingly attainable over the last fifteen years. A recent report indicates that the nation’s price-to-income ratio has significantly decreased from 88.5 in 2010 to 45.3 by 2025.

As average income levels have surged by more than four times—growing at approximately 10 percent annually—housing prices have risen at a much more moderate rate of 5–7 percent per year, according to data compiled by Colliers India.

This expanding gap has greatly enhanced the ability of Indian families to acquire homes in major urban areas.

This progress has occurred despite the residential sector facing numerous fluctuations due to policy changes, economic disruptions, and new regulations, as noted in the report.

Over the past twenty years, the market has successfully navigated significant developments, including PMAY, demonetisation, RERA, the NBFC crisis, SWAMIH funding support, and the implementation of GST.

Nonetheless, housing sales have remained robust. In the post-pandemic period, sales in major cities reached between 3–4 lakh units annually, driven by improved infrastructure, better affordability, supportive monetary policy, and rising incomes.

Experts assert that the steady rise in incomes, which has outpaced property price growth, has bolstered the strong sales momentum.

Badal Yagnik, CEO and MD of Colliers India, states that housing demand continues to be strong due to favourable interest rates and increasing income levels.

“While the costs of raw materials have elevated housing prices in recent years, the faster increase in incomes has allowed buyers to keep pace,” Yagnik remarked.

Despite the overall positive affordability landscape, conditions vary significantly among cities and micro markets.

Local dynamics such as demand-supply equilibrium, pricing strategies, and buyer demographics affect how affordability translates into actual sales.

Developers are continually offering a diverse range of products across various price points to cater to India’s highly price-sensitive housing market.

Across the eight major Tier I cities, affordability has significantly improved since 2010.

Cities such as Ahmedabad and Hyderabad have emerged as some of the most affordable residential markets.

Anticipated GST rate adjustments on essential construction materials are expected to enhance market sentiment further, particularly within the affordable and mid-income housing sectors, according to the report.