- Price-to-Income Disparity: Home prices have surged by 45% to 60% in the last four years, while middle-class salaries have only risen by 20% to 30%, or less.
- Case Study: A fictional comparison between two brothers shows that a flat bought for ₹55 lakh in 2021 with an EMI of 37% of the elder brother’s salary, costs ₹1.2 crore in 2025, requiring 66% of the younger brother’s higher salary, making it unaffordable.
- Market Shift: This gap has led to a major delay or cancellation of home-buying plans for most middle-class Indians. Consequently, the market is now concentrated on luxury and ultra-luxury homes, catering to the rich who are buying for both living and investment.
- Oversupply: This focus on luxury has caused a massive oversupply of unsold high-end homes in metros like Delhi NCR and Hyderabad.
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