There is a noticeable difference between luxurious and affordable homes in India's housing sector. So, to answer your query: how are people affording homes? The middle class finds it difficult to keep up with the rapidly rising cost of real estate, while billionaires purchase multi-crore sea facing apartments. The affordability gap widened between 2020 and 2024 as family earnings increased at a 5.4% CAGR while housing prices increased at a 9.3% CAGR.
How are People Able to Afford Exorbitant Housing Prices in India?
Honestly speaking, in this race of buying expensive homes, most of the people struggle. They try to depend mostly on home loans and take out maximum loans, usually ranging from Rs. 80 Lakhs to Rs. 1 Cr, and beyond. Oftentimes leveraging dual incomes to cover such high costs.
However, then comes the risk of layoffs that is common nowadays. As per a recent news a Bengaluru techie struggles to pay a significant home loan EMI of Rs. 78,000 after losing his job. So, if you see, people are not actually able to afford such expensive housing.
Now in this scenario, the only solution or help that people can get to buy houses are: Through government schemes:
For first-time homeowners, initiatives such as the Pradhan Mantri Awas Yojana (PMAY) offer financial assistance, reduced down payments, and interest discounts.
To lessen the financial load, several state governments and developers also provide incentives or affordable housing projects.
Even though there are obstacles to overcome, these tactics assist middle-class and salaried families in navigating India's expensive real estate market and obtaining a home in spite of growing property prices.
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How are People Affording Homes?
Jiten78
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2025-10-14T10:01:45+00:00 2025-10-14T10:01:46+00:00Comment
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