Owning a home was once seen as the ultimate financial goal for India’s middle class. But rising property prices, stagnant wages, and a system skewed toward the ultra-rich are making that goal nearly impossible. The dream of homeownership is no longer about hard work—it's about privilege.
Real Estate Boom, But Not for the Middle Class
India’s real estate sector is booming, with market value jumping from $200 billion in 2021 to $482 billion in 2024. But that boom doesn't include the middle class. According to Finology research quoted by Mint, affordable housing supply has fallen by 36% across major cities in just two years.
Metrics Reveal a Distorted Reality
The Price-to-Income (P/I) ratio, a key affordability indicator, now stands at 7.5—well above the global comfort benchmark of 5. In Mumbai, it's a staggering 14.3. EMI-to-income ratios have also surged, with the national average reaching 61%. In cities like Mumbai, it exceeds 100%, making homeownership financially unfeasible.
Loopholes and Luxury: A System Designed for the Rich
Developers are increasingly abandoning affordable housing in favor of high-margin luxury projects. Add to that a thriving black money economy and artificially low Floor Space Index (FSI) regulations, and the result is a housing market that rewards speculation while penalizing transparency and salaried buyers.
The Way Forward
Unless policy-makers implement serious reforms—raising FSI, regulating black money transactions, and incentivizing affordable housing—the middle class will remain locked out. India doesn't lack homes; it lacks accessible homes. And until that changes, a generation of Indians will rent the dream they once hoped to own.
