According to a recent survey of property market experts, home prices in India are expected to increase by 6.5% in 2025. This growth is primarily driven by demand from the wealthiest 1% of the population, who control 40% of the nation's wealth and are actively purchasing homes in urban areas with lucrative job opportunities.
Despite a tightening middle class and high consumer inflation leading to reduced spending, analysts believe that the affluent segment will continue to drive short-term price increases. However, experts caution that there are limits to this demand, especially considering the current slowdown in the economy.
Last year, home prices increased by 4.3%, and this year they are projected to rise by 7.0%. Median forecasts indicate a further increase of 6.5% in 2025 and 7.5% in 2026.