Affordable Homes Out of Reach? India’s Real Estate Imbalance Deepens

A strange situation has developed in the Indian real estate sector. While middle-class people can't afford to buy homes, developers are building luxury towers. Where is the real problem? Here's what experts are saying. 

House prices are skyrocketing

From 2020-2025, home prices rose 10% annually, but salaries only 5%. This makes buying a home nearly impossible for many, especially in cities like Mumbai.

Affordable homes are disappearing

Finding affordable homes is now nearly impossible. Availability has dropped by 70% in Hyderabad, 60% in Mumbai, and 50% in Delhi. Builders are focusing on the rich.

Luxury towers are all the rage

Currently, 62% of new homes for sale are priced over one crore rupees, making them unaffordable for the middle class. Builders are focusing on high-end, luxury projects.

Who is buying these homes?

These luxury flats are mainly bought by NRIs, global investors, and millionaires. In 2024, 63% of the $8.9 billion invested in Indian real estate came from foreign investors.

Sales are down, but prices aren't

Though sales fell 20-25% in 2024, prices haven't dropped. Wealthy buyers don't need to sell fast, creating a shortage of affordable homes and a potential future housing crisis.