House prices in India are surging, with no signs of slowing down, as highlighted by popular finfluencer and Wisdom Hatch founder Akshat Shrivastava. In a recent post, Shrivastava explained the driving force behind the escalating prices: the dominance of private developers in the housing market.
Traditionally, owning a home in India involved purchasing land and constructing a house from scratch. However, the modern trend leans towards ready-to-move-in properties, a shift that benefits private developers. According to Shrivastava, this change in consumer behavior has allowed private developers to dictate prices, steering clear of affordability in favor of maximizing profits.
In a bold statement, Shrivastava revealed the tactics employed by private developers to maintain high prices, even amidst global economic uncertainties. These strategies include deliberate project delays, stalling construction, and resorting to equity and cash deals with large private equity firms. This approach, Shrivastava emphasized, prioritizes profit margins over accessibility for the average buyer.
Adding a layer of complexity to the situation, Shrivastava juxtaposed India’s GDP per capita with its soaring housing prices. With a GDP per capita of $2200, significantly lower than that of the US, India’s housing market has begun to outstrip many major American cities in terms of pricing. This stark contrast raises concerns about the sustainability of the housing bubble and its potential consequences for the average Indian homebuyer.
As of early 2025, major metropolitan cities in India have witnessed a significant uptick in real estate prices. Mumbai, known for its exorbitant property rates, continues to lead the pack with prices ranging from ₹15,000 to ₹25,000 per square foot. Factors such as limited land availability, ongoing infrastructure projects like the Mumbai Coastal Road, and the allure of the city to high net-worth individuals and celebrities from Bollywood have all contributed to the relentless surge in prices.
Regional Disparities and Growth Trends
Delhi NCR has experienced the highest year-on-year price growth, reaching an impressive 49%. This growth can be attributed to major projects like the Noida International Airport and a rising demand for luxury housing options. Similarly, cities like Bengaluru and Hyderabad have seen significant price escalations due to their thriving IT sectors, with Bengaluru’s rates averaging between ₹7,000 and ₹12,000 per square foot.
Peripheral markets, such as Dwarka Expressway in NCR and Panvel in MMR, have emerged as hotspots for property investment, thanks to their affordability and enhanced connectivity. The luxury housing segment remains dominant across metropolitan areas, further driving up prices. The dwindling supply of affordable housing options only exacerbates the affordability crisis, painting a grim picture for prospective homebuyers.
Shrivastava’s analysis serves as a stark reminder of the current real estate landscape in India. With private developers at the helm, the chances of a price correction seem bleak. As the market continues on its upward trajectory, it becomes increasingly evident that affordability and accessibility may remain distant dreams for the average Indian citizen. Only time will reveal the true extent of the housing market’s resilience and the challenges it poses to aspiring homeowners.
