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India home prices set to soar, pushing millions into costly rentalswww.reuters.com/world/india/poll-india-home-prices-set-soar-pushing-millions-into-costly-rentals-2025-09-12
570 sats \ 10 comments \ @Coinsreporter 4h econ
Average home prices, which have more than doubled in the past decade, were forecast to rise 6.3% this year and 7.0% in 2026, after climbing about 4.0% in 2024, median estimates from a Reuters survey of 20 property analysts show. The survey ran from August 14 to September 12.
That pace was faster than the 6.0% and 5.0% predicted in June. Prices broadly refer to housing in major cities.
As though the home prices are already not at sky high, I think these polls are missing a big point. If I even consider the lowest wages in India from the times of 2010s, they have about tripled and the salaries for managerial or government jobs have gone 4 times more than that time.
And when I compare the home prices in big cities, I compare them to the developed world and I find that they are almost similar. The demand here is pretty high and with more people earning more, the prices of homes will definitely soar. But it's nothing to exaggerate about. It's normal for a developing country.
Another big point that media claims about income being distributed unevenly is a bullshit because they never include a big chunk of India people working abroad and sending money here. Yes, I agree that the gap was there, but it's continuously diminishing, and that's what the media should talk about.
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21 sats \ 7 replies \ @Undisciplined 3h
I'd imagine new homes are also qualitatively different, so it's not that people are paying twice as much for the same home as they were ten years ago.
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42 sats \ 6 replies \ @Coinsreporter OP 3h
India is actually still a land of villages. Most people live and have to live in the cities for jobs. At this time the most companies are established only at the outskirts of big cities and so are liveable areas are developed there.
People generally buy flats/appartments of 2bhk or 3bhks on loan which will cost them less than the rent if they are to live for jobs in a city for 20-40 years. These apartments are cozy but pretty good to transfer when someone returns back to his town/village after retirement.These in fact act like investment as well.
I too bought a 2bhk when I lived in the city, which gave me around 200% return in 15 years + I saved a good amount on rent as well.
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0 sats \ 5 replies \ @Solomonsatoshi 1h
So the apartments are financed with fiat debt and owners pay the interest to private banks. Whether you rent or own you are effectively paying the banks rent, either directly, for 'owners' or via a landlord investor who is funded by the bank. Over the last 35 years as the price of money has declined from around 20% to around 5% (in western economies) the value of real estate was pumped up, simply because buyers can afford to pay a much larger nominal price when the rent (interest) on the debt is lower. This process was a one off- the price of money cannot now go much lower- thus property prices will tend to be much more either static or declining in the coming decades. The fiat debt leveraged property price pump has reached its leverage limits, and all that is left is the banks still collecting the rent from most home owners and tenants...hoping that prices do not collapse. If the price of money (interest rate) does increase much, property prices could easily collapse...and so could the banks, who have become ever more dependent upon this non productive rentseeking use of fiat debt issuance.
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21 sats \ 4 replies \ @Coinsreporter OP 1h
It's still a bit better in India. Firstly there are many government banks which are providing loans at a very nominal rate and also providing options of affordable housing through subsidized loans etc.
India's economy unlike USA's (or most others) is not entirely debt based. I'd like it to rather label it as consumption based. US and Europe are heavily reliant on credit-fueled consumption or investment bubbles, India's growth is driven by a more balanced set of factors like domestic consumption market (over 60% of GDP), strong public infrastructure investment, and resilient services contribute significantly to GDP.
India's large foreign exchange reserves provide a strong buffer against external debt-to-GDP ratio is manageable.
India's financial system is less developed than those in many Western countries, where credit cards and consumer debt play a much larger role in household finances.
All in all India's economy is not an anomaly entirely separate from the global system of credit and debt. It leverages both public and private debt to fuel its growth and development, but does so within the context of a mixed economy with other major drivers like domestic consumption.
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0 sats \ 3 replies \ @Solomonsatoshi 53m
Yes that is what I guesses would be the case in India with housing debt being less highly leveraged and more state provided. Assuming there is development of Indias productive capacity then the future may be brighter than in the more highly financialised west where fiat funding of housing has become the main recipient of private bank fiat debt issuance- for example here in New Zealand, since neoliberal deregulation of banking in the 1980s the ratio of commercial bank funding toward housing has escalated from close to zero to over 60% of their total issuance- that of course means that fiat debt issuance toward productive purposes- mainly farming and industry in NZ has declined from close to 100% to below 40%. India does sound less captured by the neoliberal fiat debt slavery misuse of fiat capital issuance that has developed in the west. Good for India!
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0 sats \ 2 replies \ @Coinsreporter OP 46m
Yes, I'm very excited about it. India is definitely not following the path of the west or China or any other nation. It's found a midway or a different route which so far seems much much better. Although a big credit in making india a 'very resilient mixed economy' goes to its people and culture.
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0 sats \ 1 reply \ @Solomonsatoshi 31m
Having a strong culture of self determination and the scale that India has means you can choose a more independent path and that is a definite strategic advantage imo. My home New Zealand has always been a subservient lapdog to first Britain and then immediately following WW2 the US. The banking system in NZ is made up of 4 large banks who are all majority owned by US shareholders. NZ is monetarily and militarily subservient to the US and pays tribute in part via the massive profits extracted by US banks. Politicians here claim we run an independent foreign policy but many of them are strongly influenced by US, and increasingly, Chinese business interests. As Chinas economy comes to dominate international trade India might help balance that dominance as it may have the development potential and cultural strength to compete with China in some areas that even the west cannot.
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21 sats \ 0 replies \ @Coinsreporter OP 25m
I can understand the pain of all the nations that are carrying everything under the shade of the USA. Take Europe for example, Trump is the de facto president of the Europe as well.
Chinese economy is overly reliant on exports which has become a big deal for them. And the way china's economy has boomed, it's more likely it'll burst like Malaysia.
India is not trying to challenge any nation but building itself stronger day by day and that's the motive I see in current India's politics, culture, youth, media and everywhere.
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21 sats \ 1 reply \ @Solomonsatoshi 3h
How much if at all is fiat debt funding of house purchases a factor? Would most home buyers use fiat debt based mortgage funding to purchase housing?
Across most of the west the liberalisation of home mortgage funding since the neoliberal reforms of the 1980s have caused house prices to rise faster than wages and caused growing inequality.
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7 sats \ 0 replies \ @Coinsreporter OP 3h
How much if at all is fiat debt funding of house purchases a factor?
#1220273
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