Why is your home dream broken? 59% of Indians left hope, know how to become a real estate of betting
Why indians are loosing hope to oven a house: Having your home in India is not just a property, but a dream – a symbol of security, stability and social prestige. It has been the basic basis of the aspirations of the Indian middle class. However, recent statistics and experts’ comments suggest that this dream is now breaking rapidly. Recently, according to a recent social media post by a chartered accountant on X, 59% of people in India have given up hope of buying houses. This figure is not only shocking, but it also indicates a deep social and economic inequality, where the real estate market is becoming a stronghold of betting and the common man is missing behind.
Why the dream of the house of Indians is breaking: Know the bitter reality
Nitin Kaushik’s post presents a serious picture of India’s housing crisis. He says that in the last five years, property prices in the top eight cities of India have almost doubled, while average income has increased slightly. This is a gap that is almost impossible to buy a house for the middle class. ‘Rule of 5-20-40’ (where home loans can be found up to 5 times of your annual income, 20% down payment and 40% EMI-to-Income Ratio) is now meaningless. For example, if your annual income is also Rs 10 lakh, then you cannot even imagine buying a house of Rs 2 crore, because for this you will have to save your entire salary for 20 years, which is impractical. This is a clear indication of ‘Welcome to the Great Indian Inivacity’.
Inequality and betting game
This problem is not only limited to rising prices, but a deep ‘mathematics of betting’ is working behind it. Today, the house is believed to be ‘place to keep money’ more than the place of living. The rich people buy property in wholesale in pre-launch, take discounts on agricultural income, and make land deals to save tax. This makes real estate a means of saving a tax, and investors continue to buy property. The direct result of this is that people who really want to buy a house get out of the market. Prices have increased so much in cities like Gurugram that they have become expensive than New York, which is a serious concern.
The real estate sector is now focusing more on upper-age customers than the middle class. The availability of affordable houses priced below Rs 1 crore in 2022 was 3.1 lakhs, which fell 36% to only 1.98 lakhs by 2024. At the same time, there has been a huge increase in supply of luxury houses (such as 192% in Delhi-NCR and 187% in Bengaluru).
Increasing burden on middle class
It is now common to take a home loan to buy a house, but the EMI of home loan is now overshadowing the income. ‘EMI to Income Resho’ (the percentage of monthly income that is spent in EMI) was 46% in 2020, which has increased to 61% by 2024. This simply means that for many families, buying a house will now mean their lifestyle and perhaps compromise with basic needs. This situation is creating extreme financial pressure for the middle class, which is removing their dream of ‘Apna Ghar’.
The dream of buying a house in India is not just a personal tragedy, but a serious social and economic challenge. This is the result of increasing inequality, pressure of urbanization and betting in the real estate market. If this trend continues, it can be harmful to both social stability and economic development.
It is time to take serious attention to this issue. It is necessary to take concrete steps to increase the supply of affordable housing, curb betting, and to bridge the gap between income-property. The ‘Home Onsap’, which was once the identity of the middle class, will have to reach their reach again. This is possible only when we understand that this game is being played incorrectly.
