‘Why would businesses...’: Reddit post triggers debate on India’s ‘first-world level’ real estate prices

A video post on Reddit has reignited discussions about India's soaring real estate prices, with users questioning their sustainability and impact on the economy. One user pointed out that many businesses have historically set up offices in India due to its low cost of living and affordable labour. However, with land prices and lease rates climbing rapidly, they questioned, “Why would businesses choose to set up here?”

"If land prices and leases will keep increasing similar to first world countries or even worse other third world countries with much better infrastructure. Why would businesses choose to setup their businesses here. Peoples purchasing power has already been killed with extremely high costs of living compared to the income," wrote the user.  

Another user compared India’s real estate rates to those in developed countries, stating, “The real estate prices are at first-world country levels. For what? Polluted air, water problems, and sewage on the roads.” Others argued that the high prices are largely driven by black money investments rather than genuine demand.  

A user remarked, “You can get a bigger and better apartment in NYC than in DLF. Million-dollar homes are the cost in central NYC now.” Another echoed similar concerns, highlighting South Korea’s housing crisis: “Real estate inflation is also a global phenomenon. In South Korea, people have stopped reproducing because of expensive real estate.”  

Some users shared personal strategies to counter rising property costs, with one stating, “I’m actually thinking to save money and buy outside India because of pollution, infrastructure, and the life we get for these prices — it’s just not worth it.”

Comparisons between Gurugram and Bangalore’s real estate markets also emerged in the discussion. One user pointed out that Gurugram’s property growth has been “unbelievable, especially considering the low rental yields.” They warned that buyers at current rates might end up “holding the bag.” Bangalore, in contrast, was described as having “more well-rounded growth.”