Written by Joyce Nzomo
Home prices in India are climbing faster than expected, driven mainly by wealthy buyers, while affordable housing is becoming harder to find, according to a Reuters poll of property experts.
The rapid growth of high-paying jobs in just a few big cities, combined with stagnant wages for many workers, has made buying a home impossible for millions moving to urban areas. As a result, more people are forced into renting where costs are also rising
quickly.
India currently faces a shortage of about 10 million affordable homes; a gap experts warn could triple by 2030. Average home prices, which have already doubled in the past decade, are expected to rise 6.3% in 2025 and 7% in 2026, faster than earlier predictions.
Rents in cities are also projected to increase between 5% and 8% in the coming year, outpacing inflation. Despite the Reserve Bank of India cutting interest rates this year, experts say it has done little to improve affordability, since property prices keep rising faster than incomes.
Analysts warn that the housing market now favors luxury buyers, leaving ordinary families priced out. Some say the average age to afford a first home has already shifted from the early 30s to the mid-40s.
Experts also caution that unequal land ownership by the wealthy makes it even harder for cities to provide affordable housing options.
Courtesy of Reuters
