Homes To Become More Expensive For Indians In Next Few Years, Reveals Poll

The average home prices in the country are expected to be on the rise backed majorly by demand from rich individuals as the surge in cost of living makes owning a property unaffordable for most people

The poll showed that home prices in the country’s major cities are expected to climb 7 per cent in the year and 6.5 per cent in 2025.

Source : 99acres

Home prices in India are set to increase steadily over the next few years, a recent poll revealed. The average home prices in the country are expected to be on the rise backed majorly by demand from rich individuals as the increase in cost of living makes owning a property unaffordable for most people.

The poll by Reuters showed that home prices in the country’s major cities are expected to climb 7 per cent in the year and 6.5 per cent in 2025. The expectations for housing prices are of 7.5 per cent jump in 2026, the survey projected.

Notably, the rising inflation levels have escalated everyday struggles for the middle class, while the richest 1 per cent population of the country owns 40 per cent of the overall wealth and are quickly buying homes in big cities.

The report cited property analysts and said that this might be sufficient to sustain the price in the short-term, however, it might be difficult for the wealthy population to keep this demand level alive in the long term.

Highlighting the issues with demand in the real estate sector, Ajay Sharma, Managing Director, Valuation Services, Colliers International, noted, “The segment which is driving all this price increase is the luxury segment. And this will continue for some more time, but the entire narrative we all are seeing is very rosy. Nobody is talking about structural issues in the demand. Once the top cream stops buying, you will have a massive fall in sales.”

At the same time, rents are projected to climb at an even faster rate of 7.5 per cent against a 10 per cent jump in house prices in the coming year, the poll stated. 

Notably, the survey included the median forecasts from the Nov 12-19 survey of 12 property markets.