Real Estate Crisis: Is India Facing A Housing Bubble?
Introduction In recent years, the Indian real estate market has been the subject of much debate and speculation. Some experts have raised concerns about the possibility of a bubble, citing factors such as rapid price appreciation, high levels of unsold inventory, and a slowdown in sales. Home prices in almost all large Indian cities are unaffordable. In cities like Mumbai and Gurgaon, buying a home demands decades of savings. In fact, as The Times of India reported on June 24, 2025, it would take 109 years of savings for the richest 5 percent of families in Mumbai to be able to buy a home to live in. In Gurgaon it would take 64 years. For Bengaluru and Delhi, the figure was at 36 years and 35 years respectively. Now, these are average numbers, and like all average numbers they hide more than they reveal. Nonetheless, even if it would take half the number of years, the message is simple: Home prices in Indian cities have reached extremely high levels. Why Bubble migh...