₹1.5 crore for a flat? A risk analyst questions India’s blind rush to own homes

In India, owning a home has long been treated as a life goal—something you must do. But that belief is slowly starting to shift.

Hardik Joshi, a risk analyst, summed it up in a recent post: “At some point, people stop saying ‘I must buy a house.’ And start asking ‘Is buying actually worth it?’”

It’s a valid question in 2025. 

“Why do Indian parents force their kids to buy houses?” he asks. For many, homeownership is still seen as a rite of passage. Common refrains include:

“Beta, ghar lena zaroori hai.”

“Apna ghar ho toh life set hai.”

“Rent pe paisa barbaad mat karo.”

But the numbers tell a different story.

A ₹1.5 crore apartment typically needs a ₹30 lakh down payment and a ₹1.2 crore home loan. At 9% interest, that adds up to more than ₹2.5 crore over time—plus you’re tied to one city, one job, one lifestyle.

Renting the same home? Around ₹40,000 per month. Invest that ₹30 lakh down payment instead, and it could grow to over ₹3 crore in 20 years. You stay mobile, financially flexible, and free to explore.

So what makes sense?

If stability, long-term roots, and family setup matter → buy.

If flexibility, financial growth, and global exposure matter → rent.

This shift in thinking mirrors a broader change in the market. Finfluencer and Wisdom Hatch founder Akshat Shrivastava recently pointed to private developers as a key factor in India’s rising property costs.

“Most of the houses in India are NOW being developed by private developers… and the thing is that private developers will never sell you cheap,” he said.

Earlier generations built their homes. Today, buyers want ready-to-move-in spaces. Developers know it—and hold their prices.

“They will wait for years, stall projects, delay handovers. If that doesn’t work, they’ll sell their projects to large PE firms for equity + cash deals—not you,” Shrivastava noted.

He also pointed to the imbalance between income and real estate costs:
“Our GDP per capita is $2200, almost 40 times less than the US, but our housing prices have started to outcompete many top US cities.”

There’s no relief in sight. Mumbai leads with ₹15,000–₹25,000 per sq. ft. Delhi NCR has seen a 49% annual rise in prices, boosted by luxury demand and infrastructure projects like the Noida International Airport. Bengaluru and Hyderabad continue to surge, driven by tech-sector growth.

Peripheral markets like Panvel and Dwarka Expressway are appreciating fast, but affordability is shrinking. The luxury segment dominates. Supply in budget housing continues to fall.

As Joshi’s post frames it, the question is no longer about aspiration. It’s about strategy. Is homeownership still a dream—or just a very expensive trap?