For decades, owning a home in India has been considered a financial milestone—a necessity rather than a choice. But this long-standing belief is now shifting as more individuals question whether buying property truly makes sense.
Hardik Joshi, a risk analyst, captured this changing mindset in a recent post:
“At some point, people stop saying ‘I must buy a house’ and start asking, ‘Is buying actually worth it?’”
Why Are Indian Parents Still Pushing Homeownership?
Even in 2025, many families continue to see homeownership as a rite of passage. Common phrases like:
- “Beta, ghar lena zaroori hai.” (Son, buying a house is a must.)
- “Apna ghar ho toh life set hai.” (Your life is secure if you own a home.)
- “Rent pe paisa barbaad mat karo.” (Renting is a waste of money.)
…reinforce this mindset. But do the numbers actually support it?
The Cost of Buying vs. Renting
A ₹1.5 crore apartment typically requires:
✅ ₹30 lakh as a down payment
✅ ₹1.2 crore home loan
✅ 9% interest rate, leading to a total cost of ₹2.5 crore+ over time
On the other hand, renting the same property costs around ₹40,000 per month. If you invest that ₹30 lakh down payment instead, it could grow beyond ₹3 crore in 20 years—while allowing you to remain financially flexible and mobile.
So, what’s the smarter choice?
✔ If you prioritize stability, long-term roots, and family security → Buy.
✔ If financial flexibility, career mobility, and wealth growth matter → Rent.
Insider Insights on Ready-to-Move-In Luxury Apartments
Why Are Housing Prices Skyrocketing?
This shift in thinking reflects broader real estate trends in India. Akshat Shrivastava, a well-known finance influencer and founder of Wisdom Hatch, attributes soaring property prices to one key factor:
“Most houses in India are now built by private developers… and private developers will never sell cheap.”
Unlike previous generations who constructed their own homes, today’s buyers prefer ready-to-move-in properties—and developers are capitalizing on this demand.
🔹 Delays & Price Control: Developers often stall projects, delay handovers, and wait for years to maximize prices.
🔹 Selling to Private Equity Firms: If individual buyers hesitate, developers sell to large PE firms instead—keeping costs high.
Also Read: India’s Soaring Property Prices: Zerodha’s Kamath Predicts Possible Market Crash
India’s Housing Prices Are Outpacing Income Growth
Shrivastava also highlighted the alarming gap between income levels and property prices:
“India’s GDP per capita is just $2,200—nearly 40 times lower than the US—yet our housing prices are now competing with top US cities.”
Meanwhile, prices continue to surge across major Indian metros:
🏙️ Mumbai: ₹15,000–₹25,000 per sq. ft.
🏙️ Delhi NCR: 49% annual price growth, driven by luxury housing and infrastructure projects like Noida International Airport.
🏙️ Bengaluru & Hyderabad: Rising prices fueled by tech-sector expansion.
🏙️ Emerging Hubs: Panvel, Dwarka Expressway, and other peripheral markets are appreciating rapidly—but affordability is shrinking.
While luxury housing dominates, the supply of budget homes is steadily declining—making homeownership increasingly out of reach for the average buyer.
Also Read: The ‘Coldplay Effect’ in Indian Real Estate: A Deep Dive into Symbolic Consumption and Its Economic Implications
Is Homeownership Still a Dream—or a Financial Trap?
As housing prices soar and the rent vs. buy debate intensifies, one thing is clear: The Indian real estate landscape is evolving. Owning a home is no longer just about status or tradition—it’s about strategy. Making the right choice requires looking beyond emotions and evaluating financial realities.
So, what’s your move? Buy for stability—or rent for financial freedom
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