Most Affordable City in India to Live in 2025 – Updated Cost Comparison Guide

In 2025, when India is facing economic challenges, Ahmedabad continues to hold its place as the economic and cultural hub of Gujarat. Despite rising costs in many other cities, Ahmedabad has been marked as one of the most affordable cities in the country. It is a city where modern development meets history, and where people enjoy a supportive community, stable economy, and comfortable lifestyle without breaking the bank.

The city is especially attractive because of its low EMI burden, which stands at only 18%, the lowest among India’s major cities. This makes home buying easier, especially for middle-income families who want security without the fear of being drowned in debt. Whether you are a bachelor looking for independence, a couple starting a new life together, or a family planning to settle down, Ahmedabad has affordable options for everyone.

Ahmedabad: The Most Affordable City to Live in India

For Bachelors

Ahmedabad is one of the best cities for bachelors seeking affordable independent living. Rental options are available in all ranges, from shared hostels and PGs to single-room apartments. The city’s famous food streets and economical grocery stores help keep food expenses under control. Public transport like BRTS buses, metro services, and shared autos make daily travel easy and affordable. On average, a single person can live comfortably on ₹15,000 to ₹25,000 per month, covering rent, utilities, food, and leisure. This budget-friendly lifestyle also gives individuals a chance to save for the future.

For Couples

For couples, Ahmedabad offers great flexibility with 2 BHK and 3 BHK apartments that are both spacious and affordable compared to other metros. Many couples choose to live in central locations like Satellite, Prahladnagar, and SG Highway, where they get quick access to restaurants, shopping malls, gyms, and hospitals. With a vibrant food culture and affordable transport, couples can enjoy city life without overspending. Monthly expenses for two people usually range between ₹25,000 to ₹45,000, depending on lifestyle choices such as dining out, owning a car, or pursuing hobbies.

For Families

Families find Ahmedabad an ideal place to settle down. Neighborhoods like Bhopal, Nikol, and Chandkhera offer large apartments and independent houses at reasonable rates. Parents benefit from the availability of good schools, colleges, and coaching institutes, while healthcare facilities such as Zydus Hospital and Civil Hospital ensure access to proper medical care. The city also has safe residential colonies, parks for children, and well-connected public transport. A family of four can expect monthly living costs to range from ₹35,000 to ₹70,000, including rent or EMI, school fees, groceries, utilities, and transportation.

Comparison With Other Affordable Cities

While other cities in India, like Pune, Kolkata, and Chennai, also rank high on the affordability graph. Ahmedabad stands out due to its incomparable low EMI burden, competitive property rates, and housing market that hasn’t yet succumbed to speculative pricing. The city has a smart future ready for the new generation and family-oriented communities to have budget-conscious living.

Pune: Rising Popularity with Manageable Costs

Over time, Pune has become a major urban magnet for IT professionals and young families. Since its average property prices have climbed to ₹4,868 per sq ft, showing a 6% rise from last year. Yet the EMI-to-income ratio is 28% which is 10% more than what is in Ahmedabad. Pune is still a relatively affordable city.

Though the expanding suburbs, refining connectivity, and growing job market make it a suitable option to invest and settle.

Kolkata: Low Prices with Balanced Growth

Kolkata is famous for its affordable metropolitan services in India. Since average property prices stand at ₹3,891 per sq ft, additionally, 26% EMI-to-income. A single person can expect their monthly expense to be  ₹36,103 approximately, including rent, while a family of four might need to have monthly spending around ₹115,773 to ensure seamless living.

Chennai: Traditional Yet Affordable

Chennai is still an affordable city with average property rates ranging from ₹4,983 to ₹30,000 per sq ft (up 9% YoY), and the EMI-to-income ratio remains 27%. Chennai stands out as a better value-for-money city among major metros in India. The city has a stable housing market, decent infrastructure, healthcare, and high-quality education, but can’t beat Ahmedabad on the EMI-on-income ratio.

For those with families and looking for long-term settlements, Chennai is a well-suited city with low living costs, strong civic systems that make it a favourable homeland.

Will Affordability Last Through 2025?

The outlook for the second half of 2025 seems promising. Since interest rates are expected to stay stable, government schemes like stamp duty discounts and home loan facilities make housing more affordable, especially in two-tier and three-tier cities. Besides, builders are focusing more on mid-range housing schemes with better lifestyle features to meet more of what buyers are looking for. For more details on housing trends and affordability across India, you can check The Economic Times Real Estate section.

Conclusion

In 2025, Ahmedabad continues to shine as India’s most affordable major city. With its balance of low living costs, strong economic stability, modern infrastructure, and community spirit, the city offers a lifestyle that does not force residents to stretch their finances.

From bachelors saving for the future, to couples enjoying modern living, to families finding a supportive environment, Ahmedabad proves that affordability and quality of life can go hand in hand. In a time of rising costs across the country, the city stands as an example of how smart planning and supportive policies can create a sustainable and comfortable living experience.

FAQ's

Q. Is Ahmedabad really the most affordable city to live in India in 2025?

Yes, Ahmedabad continues to be one of the most affordable cities in India in 2025. With an EMI-to-income ratio of only 18%, it is much lower than other cities like Pune (28%), Kolkata (26%), and Chennai (27%).

Q. How much does it cost to live in Ahmedabad as a bachelor?

A bachelor in Ahmedabad can live comfortably within ₹15,000 to ₹25,000 per month. This includes rent, groceries, transport, utilities, and other personal expenses.

Q. Is Ahmedabad a good city for families to settle?

Absolutely. Families can find affordable housing in areas like Bhopal, Nikol, and Chandkhera. With good schools, healthcare facilities, modern infrastructure, and safe communities, Ahmedabad is a family-friendly city.

Q. What are the average property rates in Ahmedabad compared to other cities?

In 2025, property rates in Ahmedabad will remain competitive and stable compared to cities like Pune, Chennai, and Kolkata. Unlike other metros, the city has not faced extreme speculative pricing, making it better for middle-class home buyers.

Q. Will housing in Ahmedabad stay affordable in the coming years?

Yes. Since interest rates are expected to remain steady and the government continues to offer schemes like stamp duty discounts, Ahmedabad’s housing market is likely to stay affordable in the near future. Builders are also focusing on mid-range projects for families and working professionals.