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India's Home Prices Surge: 6.3% Increase Predicted by 2025

9/14/2025

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Summary

Story summary

Home prices in India are set to rise faster than anticipated due to demand from affluent buyers and a shortage of affordable housing.
A Reuters poll predicts average home prices will increase by 6.3% in 2025 and 7.0% in 2026, exceeding previous forecasts.
India has a deficit of approximately 10 million affordable homes, projected to triple by 2030.
Economic growth has not improved disposable incomes for lower-income households, leading to reliance on expensive rentals.
Urban rental rates are expected to rise by 5% to 8%, outpacing inflation, while recent interest rate cuts may not improve affordability.

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Story summary

Home prices in India are set to rise faster than anticipated due to demand from affluent buyers and a shortage of affordable housing.
A Reuters poll predicts average home prices will increase by 6.3% in 2025 and 7.0% in 2026, exceeding previous forecasts.
India has a deficit of approximately 10 million affordable homes, projected to triple by 2030.
Economic growth has not improved disposable incomes for lower-income households, leading to reliance on expensive rentals.
Urban rental rates are expected to rise by 5% to 8%, outpacing inflation, while recent interest rate cuts may not improve affordability.