High-End Housing to Lose Steam by 2030; Demand-Supply Gap Widens in Affordable Sector

Home prices will appreciate 6% over two years. The boom of the high-end sector that currently boosts the market, however, will be over in five years. Average home prices have more than doubled over the decade, while growth was a little weaker than in the previous quarter.

According to the survey, these forecasts come against the backdrop of India's 8.2% economic growth, which has outpaced most peers. Economists say this growth has disproportionately benefited high-income earners, leading to growing inequality in the country. Experts are skeptical about how long the luxury segment will continue to drive activity. The luxury segment will cease to be the primary driver of the market within five years. This segment has peaked and will decline.

Housing prices in Delhi and NCR are likely to increase by 7-8% this year and by up to 7% next year. The average growth for Mumbai is 5%. Bengaluru is expected to grow by 7%. India has a shortage of close to 10 million affordable homes. This gap is likely to triple by 2030. New launches in affordable and mid-range housing are decreasing.