Delhi has earned an unexpected global distinction. According to Deutsche Bank’s Mapping the World’s Prices 2026, it is among the cheapest major cities in the world to buy residential property.
Yet the same report places Delhi near the bottom for salaries.
The contrast exposes an often-overlooked truth about housing: low prices alone do not make homes affordable. Income determines affordability, and that is where the capital’s picture becomes far more complicated.
Delhi Property Affordability Paradox
Deutsche Bank estimates that residential property in Delhi’s city centre costs an average of US$2,465 (around ₹2.37 lakh) per square metre, ranking the city 65th among 69 global cities. At first glance, that makes Delhi look inexpensive compared with cities such as London, New York or Singapore.
But another figure tells a different story.
The report ranks Delhi 66th for monthly net salaries, at just US$538, or roughly ₹51,800. At that income level, even globally “cheap” property can remain well beyond the reach of an average household.
A simple calculation illustrates the disconnect. An 80-square-metre apartment at the report’s average city-centre price would cost nearly ₹1.9 crore. That is roughly 30 times the annual income of someone earning Delhi’s reported average salary.
While most buyers rely on home loans rather than outright purchases, the comparison highlights why international affordability rankings often fail to reflect local realities.
Why The Rankings Mislead
The Deutsche Bank report compares cities globally using prices converted into US dollars. That makes it useful for international comparisons, but less effective at explaining how affordable housing is for residents earning local wages.
The report itself reflects this imbalance. While Delhi’s property prices have declined 9.8% in dollar terms over the past decade, they have rebounded 15.7% since 2019. Salaries, meanwhile, have moved in the opposite direction, falling 17.7% over the past decade and 3.3% since 2019 in dollar terms.
In other words, homes may appear inexpensive globally, but they have not become easier to buy for the average Delhi resident.
Luxury Demand Changes Market
The broader housing market is moving in the same direction.
A Reuters poll published earlier this year found Indian residential property prices are expected to increase 5% to 7% annually through 2028, supported by strong demand for premium and luxury housing. Developers continue to favour higher-margin projects, while affordable housing supply remains relatively constrained.
That trend matters because rising prices at the top end often shape the wider market. Even if Delhi remains inexpensive compared with global financial centres, sustained price growth without matching wage growth could make homeownership increasingly difficult for first-time buyers.
Delhi Purchasing Power
Delhi’s rankings reveal less about cheap real estate than they do about purchasing power.
The capital also offers some of the world’s cheapest broadband services and among the lowest everyday living costs, according to the Deutsche Bank report. Yet low living costs cannot fully compensate for weak income growth when the goal is buying a home.
The bigger takeaway is that affordability cannot be judged by property prices in isolation. A city may look inexpensive on a global ranking, but unless wages keep pace with housing costs, ownership remains out of reach for many residents.
Delhi’s position in the latest rankings is therefore not a story about cheap homes. It is a story about the widening gap between what homes cost and what people earn.
The Logical Indian’s Perspective
Affordable housing is not just about lower property prices. It is about whether ordinary people can realistically own a home through fair incomes, accessible financing and balanced urban planning. Global rankings offer useful comparisons, but local realities matter more.
As Indian cities grow, sustainable housing policies should focus on bridging the gap between wages and home prices while ensuring development benefits both investors and aspiring homeowners. True affordability is measured by opportunity, not price tags alone.
Also Read: 3 Delhi Metro Stations Remain Closed; Rajiv Chowk Reopens Ahead of CJP’s ‘Chalo Sansad’ March
