T
he Indian housing market is unlikely to experience a downturn anytime soon, according to Akshat Shrivastava, founder of Wisdom Hatch. The reason lies in the shift towards private developers dominating the industry.
In contrast to the past, where individuals would purchase land and build their own homes, people now seek turnkey solutions. This change has led to private developers holding significant sway over the market. As a result, prices are unlikely to drop anytime soon.
Private developers employ various strategies to maintain high prices, even in the face of economic downturns. They may stall projects, delay handovers, or sell their properties to large private equity firms for cash and equity deals. This approach ensures that buyers are not offered discounted rates.
India's GDP per capita is significantly lower than many developed nations, yet housing prices have begun to rival those in top US cities. The disparity between these two figures raises questions about the sustainability of the current market trends.
Major metro cities such as Mumbai, Delhi NCR, Bengaluru, and Hyderabad are experiencing rapid price growth. Limited land availability, infrastructure projects, and demand from high-net-worth individuals and celebrities have driven up prices in these areas. For instance, property prices in Mumbai range between ₹15,000–₹25,000 per sq. ft.
The luxury housing segment is dominating the market across metros, with a decline in affordable housing supply further contributing to rising prices. Peripheral markets such as Dwarka Expressway and Panvel are also witnessing sharp appreciation due to improved connectivity and affordability.
As private developers continue to control the market, the prospects of house prices dropping remain slim. Shrivastava's insights highlight the critical reality that buyers must be prepared for a sustained upward trend in housing prices.
