Capital values to chart moderate growth; monetary Capital value appreciation is projected to moderate, with future growth connectivity. At the same time, family incomes are set to improve; household income is projected to rise by 8-10% rise in 2026, a trend towards upper-middle-income status by 20302. RB's aggressive monetary easing. As household income growth is expected to outpace capital value appreciation,these conducive policies are likely to help cushion affordability pressures. To quantify these market dynamics, CBRE Research has developed a the interplay among capital values, mortgage rates, and household incomes across major tier-l cities. Across three distinct annual household income brackets—INR 40 lakh, INR 75 lakh, and INR 1 Preferred unit configuration: 2BHK (1,250 to 1,600 sq. Preferred unit configuration: 3BHK (2,000 to 2,250 sq. Historically, between 2021 and 2024, the EMI-to-household income Preferred unit configuration: 4BHK (2,800 to 3,000 sq. ratio experienced an upward adjustment. This period was Aspirational upgrade as incomes rise: 3.5 to 4 BHK Aspirational upgrade as incomes rise:4.5to5 BHK characterised by a tightening monetary cycle, with the repo rate moving from 4.0% to 6.5% alongside capital value growth exceeding household income. Delhi-NCR: Extended Golf Course Road, NPR Delhi-NCR: Extended GolfCourse Road, NPR Mumbai: Ext. Western Suburbs, Thane, Navi Mumbai Looking ahead to the 2026-2028 period, the current trajectory signals a definitive pivot towards stabilisation. As household income growth is likely to outpace property prices, the EMl-to-income ratio is projected to plateau and is expected to cushion affordability. Index assumption: The INR 40 lakh income bracket reflects affordability across distinct micro-markets. The INR 75 lakh and INR 1 crore brackets examine affordability within the same locations, with differentiation based on project positioning (high-end vs. premium). As household incomes rise— based on growth projections from Oxford Economics (February 2026) Source:1. Oxford Economics, February 2026;2.SBl Research, January 2026 preferred unit configurations are considered in line with aspirational housing upgrades,rather than treated as fixed benchmarks. Capital values represent micro-market averages and may vary at the individual project level. Source: CBRE Research, Q1 2026