Why Property Prices in India Keep Rising
Why Property Prices in India Keep Rising
The Indian real estate market has been seeing a steady increase in property prices, making people wonder if they will ever come down. Recently, Akshat Shrivastava, a financial expert and founder of Wisdom Hatch, shared his thoughts on why prices are staying high and what it means for buyers and investors.
Why Are Property Prices Not Dropping?
Shrivastava believes that housing prices in India are unlikely to fall anytime soon. He explains that private developers now dominate the market, controlling prices and preventing them from decreasing.
- Shift in Home Buying Trends: Earlier, people used to buy land and build houses. Now, most prefer ready-made homes from private developers, who set high prices.
- Developers Keep Prices High: Even during economic slowdowns, developers use strategies to avoid reducing prices, such as delaying projects or selling to big private equity firms instead of individual buyers.
- Unmatched Property Prices: India’s GDP per capita is much lower than that of the US, yet property prices in Indian cities are as high as or even more expensive than in many top American cities.
House prices are NOT going down in India any time soon. The reason is very simple:-
— Akshat Shrivastava (@Akshat_World) February 9, 2025
Most of the houses in India are NOW being developed by private developers.
Unlike the old times, when people used to buy their land, build their houses– now, people want everything ready.…
Current Property Prices in Major Cities
As of early 2025, housing prices in key metro cities continue to rise:
- Mumbai: Still the most expensive, with prices between ₹15,000–₹25,000 per square foot. Limited land, major projects like the Mumbai Coastal Road, and demand from celebrities have driven prices up.
- Delhi NCR: Prices have shot up 49% year-on-year, thanks to Noida International Airport and increasing demand for luxury housing.
- Bengaluru & Hyderabad: Both cities are seeing price hikes due to their booming IT industries. Property prices in Bengaluru now range from ₹7,000 to ₹12,000 per square foot.
Growing Demand for Emerging Locations
Areas on the outskirts of major cities are also becoming more expensive:
- Dwarka Expressway (NCR) & Panvel (MMR): These places are growing fast due to better connectivity and relatively lower prices compared to city centers.
- Luxury Homes in High Demand: The affordable housing segment is shrinking, making it even harder for middle-class buyers to find budget-friendly options.
Will Property Prices Ever Go Down?
With private developers controlling the market, Shrivastava believes that a price drop is unlikely anytime soon. As long as demand stays high and developers continue to hold power over supply, real estate prices will keep rising.
