The aspiration of owning a home in India’s premier metropolitan hubs is colliding with a harsh economic reality. In cities like Mumbai, Bengaluru, and Delhi, the narrative of property ownership is increasingly defined by exclusion rather than opportunity. Recent market data for early 2026 reveals a troubling trend where capital values in prime corridors have surged at double-digit rates, while the supply of affordable inventory has plummeted to historical lows.
For the salaried class, the mathematics of homeownership is breaking down. The EMI-to-income ratio for average households in these top-tier cities has climbed to unsustainable levels, often exceeding sixty percent of monthly earnings. This financial strain is compounded by a rental market that has seen equally aggressive inflation, leaving professionals trapped between high rents and unattainable property prices. Developers in these saturated markets have largely pivoted toward luxury projects, where profit margins are fatter, effectively abandoning the mid-segment buyer who formed the backbone of the market a decade ago.
This volatility in the metros highlights a structural imbalance in the Indian real estate narrative. While the headlines focus on record-breaking luxury sales in Mumbai, the stability that genuine homebuyers seek is quietly emerging in alternative markets. These are regions where infrastructure growth and policy incentives are aligned with actual end-user demand rather than speculative fervor.
Lalit Parihar, Managing Director of Aaiji Group, points to this divergence in market maturity. He notes that Ahmedabad has witnessed a measured yet healthy housing price growth reflecting the city’s fundamentally strong, end-user-driven real estate market. The proposed inclusion of Ahmedabad in the list of metro cities eligible for a higher 50% House Rent Allowance (HRA) exemption under the draft Income Tax Rules, 2026, is a significant positive and will further enhance rental affordability while supporting housing demand.
The distinction Parihar draws is critical for understanding the broader market health. In overheating metros, policy often struggles to catch up with runaway prices. In contrast, markets like Ahmedabad are benefiting from forward-looking structural changes. The potential shift in HRA classification effectively places such cities on a level playing field with the metros in terms of tax benefits, without the punishing cost of living.
Parihar further elaborates that the city continues to see steady residential sales and disciplined new launches, indicating a mature and balanced market. With major infrastructure upgrades underway and the upcoming Commonwealth Games acting as a catalyst for urban development, Ahmedabad’s real estate ecosystem is well-positioned for sustainable growth.
This highlights a key lesson for the sector. Sustainable value is driven by infrastructure and genuine consumption, not just capital appreciation. Ahmedabad’s steady appreciation reinforces it’s position as an alluring market for both homebuyers and long-term investors.
For observers of the Indian property sector, the contrast is instructive. While the top metros struggle with their own success, pricing out the very workforce that powers them, other markets are demonstrating that growth does not have to come at the cost of affordability.
