Fri Nov 07 00:55:00 UTC 2025: Headline: Housing Prices Skyrocket Across India, Outpacing Wage Growth

New Delhi – The dream of homeownership is becoming increasingly elusive for many Indians as housing prices in major cities have surged dramatically, far exceeding wage growth. A new report by Housing.com and SRITNE at the Indian School of Business reveals a significant acceleration in housing prices since the start of the COVID-19 pandemic, with the trend particularly pronounced for larger 3BHK apartments.

The Housing Price Index, which tracks price changes since January 2017, shows a 26.2% increase in prices between January 2020 and June 2025, compared to a 10.6% rise in the preceding three years. Delhi-NCR saw the most significant increase, with average housing prices up a staggering 122% during the same period.

This surge is attributed to several factors, including the shift to remote work prompting demand for larger homes, and developers focusing on luxury and premium segments. While housing sales have dipped slightly, the total sales value has increased due to the higher prices of units sold.

However, real wages have declined by 1.7% between April-June 2019 and April-June 2024, leaving many prospective buyers struggling to keep up. Buyers are now forced to take out larger loans, straining their finances. The average loan size has increased by 15-20%, reaching approximately ₹35 lakh.

The Real Estate (Regulation and Development) Act, 2016 (RERA Act), has improved government regulation and transparency in the real estate sector, giving financiers more confidence.

While a recent reduction in GST on cement may eventually provide some relief, for now, the Indian housing market presents a significant challenge for those seeking to own a home in the country’s major metropolitan areas.

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