Kolkata Maintains India’s Most Affordable Housing Market Status in 2025: Affordable Or Not?

Buying a home in a city like Kolkata feels both exciting and daunting. On one hand, the cultural capital offers vibrant neighbourhoods, strong connectivity, and evolving infrastructure. On the other hand, property prices in metropolitan cities often make buyers hesitate.

So, the question arises: Does Kolkata still hold its reputation as India’s most affordable housing market in 2025?

Recent reports confirm that Kolkata ranks at the top of the affordability index for homebuyers in India. For working professionals, families, and investors, this offers a rare opportunity. With steady growth and options provided by reputable real estate developers in Kolkata, the city continues to strike a balance between affordability and liveability.

But how affordable is it truly?

Let’s explore.

Kolkata Tops Affordability Index in 2025

Kolkata stands at the top of India’s affordability charts yet again. A joint report by Knight Frank and NAREDCO reveals that home loan EMI as a percentage of household income is only 23% in Kolkata, compared to cities like Mumbai, where it exceeds 50%. The key drivers for this ranking are:

Slower price inflation compared to other metros.
Consistent demand for mid-segment homes.
Expanding metro connectivity across New Town, Garia, Dum Dum and Joka.
Competitive pricing by the top real estate company in Kolkata.

What Makes Homes Affordable in Kolkata?

While “affordable” is relative, Kolkata scores higher because of the factors below:

Balanced property prices: The average home rate in prime areas remains between ₹4,000 to ₹7,500 per sq. ft.
Improved financing access: Recent interest rate cuts boost borrowing power, making EMIs lighter.
Infrastructure growth: Metro expansions, airport upgrades, and IT hubs strengthen housing demand.
Government incentives: Housing subsidies and lower stamp duties add extra relief.

Affordable, But For Whom?

Affordability does not mean uniform accessibility for everyone. For middle-income households, homes in Rajarhat, Madhyamgram, and Baruipur remain well within reach. However, premium zones like Ballygunge or Alipore still demand higher budgets. The recent trends show:

58% of new launches in 2024 catered to the ₹40 to 80 lakhs bracket.
Growing interest in integrated townships, especially among young professionals.
Top real estate company in Kolkata, offering both luxury and budget-friendly projects.

Should You Invest in Kolkata Now?

With affordability at its peak and infrastructure improving rapidly, Kolkata offers a strong case for homebuyers in 2025. This is crucial for buyers who want quality homes without overextending finances. The current market trends highlight:

Stable property prices compared to surging metros.
High rental yields in areas near IT parks and universities.
Future-ready projects combining smart living features with green spaces.

Kolkata remains the most affordable housing market in India in 2025. While affordability varies across locations, buyers still enjoy unmatched opportunities compared to other metros. With strong government support, expanding metro lines, and projects developed by reputable real estate developers in Kolkata, the city remains attractive to both homebuyers and investors.

For those planning a home purchase, now is the right time to explore options. Choosing a trusted partner makes the process easier. Bhawani Group, recognised as a top real estate company in Kolkata, offers projects like Bhawani Inara, Bhawani Sunrise, and Bhawani Bandhan catering to diverse buyer needs while maintaining affordability. Contact us now.