India’s housing market is entering what experts call an “unreal estate” phase, where property prices continue to surge even as affordability declines sharply for a majority of citizens. The widening gap between income levels and home prices is emerging as one of the most critical challenges in India’s urban development landscape.
Recent data shows that premium and mid-segment housing are dominating new launches, while affordable housing supply has dropped significantly. With rising land costs, increased construction expenses, and shrinking developer margins, many builders are prioritising higher-priced segments—pushing entry-level buyers further out of the market.
The affordability crisis is most evident in major metros like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad, where home prices have grown much faster than wage levels. As a result, potential buyers are forced to delay purchases, shift to peripheral locations, or move toward renting as a long-term alternative.
Experts warn that the trend could impact urban planning, workforce mobility, and overall economic stability if not addressed through targeted interventions. Solutions such as increased government incentives, streamlined approvals, rental housing policies, and public-private partnerships for low-cost homes are being strongly recommended.
India’s real estate sector may be booming, but the affordability gap is widening rapidly—raising urgent questions about inclusion, accessibility, and the future of urban housing.
