India's Real Estate Crisis: Why Homes Have Become Luxury Goods—and How We Can Make Housing Affordable Again
The Great Indian Housing Paradox For most Indians, buying a home has transformed from a life goal into an almost impossible dream. In cities like Mumbai, Bengaluru, Delhi, Pune, Hyderabad, and Gurugram, the average middle-class worker spends decades saving for a small apartment while simultaneously paying soaring rents. A young professional earning ₹10 lakh annually is often expected to purchase a flat costing ₹1.5–2 crore. This means a price-to-income ratio of nearly 20–30 times annual income , whereas many developed economies historically maintain ratios closer to 5–8 times annual income . Housing has become less about providing shelter and more about preserving wealth. The question is simple: Why has real estate become so expensive? While there are multiple factors—population growth, urbanization, regulations, and infrastructure—the biggest structural issue is rarely discussed. India Taxes Consumption More Than Land India imposes GST on almost everything people consume. You pay GST ...