A Growing Urban Dilemma
Across India’s rapidly urbanising landscape, a silent crisis is intensifying: affordable housing is slipping out of reach for millions. Skyrocketing rents, shrinking living spaces, and unregulated real estate speculation are squeezing the middle class, leaving low-income families with little choice but to live in substandard conditions—or worse, on the fringes of the city.
India’s housing crisis mirrors similar issues faced in countries like Spain, where public protests have erupted over rent hikes and housing speculation. In India, however, the struggle often goes unnoticed, hidden behind concrete towers and glitzy real estate ads.
The Reality Behind the Real Estate Boom
Cities like Mumbai, Bengaluru, Delhi, and Hyderabad have seen massive real estate development over the last two decades. Yet, the majority of this construction caters to luxury or high-income buyers, not the average salaried individual. While skyscrapers rise, slums and informal settlements continue to sprawl, highlighting the glaring gap between demand and supply in the affordable segment.
According to a 2023 report by the Ministry of Housing and Urban Affairs, India faces a shortage of over 10 million urban homes, mostly for low-income groups. Despite government schemes like PMAY (Pradhan Mantri Awas Yojana), access remains limited, hampered by red tape, land constraints, and a lack of private sector participation in low-margin projects.
Rent Hikes and Stagnant Salaries
The story is not just about owning a home—renting has become equally unaffordable. In areas like Bengaluru’s Whitefield or Mumbai’s Andheri, rents have soared by 30–50% post-pandemic due to high demand and low vacancy rates. Meanwhile, salaries—especially in sectors like education, hospitality, and healthcare—have remained largely stagnant.
Many tenants now spend 40% or more of their monthly income on rent, well above the globally accepted threshold of affordability (30%). The situation is worse for migrants and students who are often forced into cramped PGs or overpriced shared flats.
The Disappearing Middle-Class Dream
The Indian middle class, once considered the backbone of economic progress, now finds itself trapped in a cycle of EMIs and rising rents. Owning a home, once the hallmark of security and success, now feels like a distant dream. First-time buyers struggle to secure loans, and even when they do, inflated property prices in urban centers mean they’re pushed to city outskirts, away from jobs, schools, and hospitals.
Landlords, Brokers, and the Unregulated Rental Market
India’s rental market remains largely unregulated, especially in Tier 1 and Tier 2 cities. With no rental caps or standardised agreements, tenants are often at the mercy of landlords and brokers. Discrimination based on gender, religion, and profession still persists, and rental laws are heavily skewed in favour of property owners.
Despite the introduction of the Model Tenancy Act, adoption across states has been slow, and implementation remains a major hurdle.
A Generation Stuck in Limbo
Much like in Spain, India’s young population is bearing the brunt of the housing crisis. Unable to afford independent accommodation, many live with parents well into their 30s—not by choice but due to economic necessity. This has far-reaching effects not just on mental health and independence, but also on marriage, mobility, and quality of life.
The Way Forward
Solving India’s housing crisis requires urgent, multi-pronged action:
-
Policy reform to ensure faster implementation of affordable housing schemes.
-
Public-private partnerships that incentivise low-cost housing development.
-
Rental regulation to protect tenant rights and control speculative rent hikes.
-
Urban planning that integrates low-income housing within city limits instead of pushing them to the periphery.
-
Progressive taxation on vacant properties and multiple homeownership to curb real estate hoarding.
Housing as a Right, Not a Privilege
India’s Constitution may not yet guarantee housing as a fundamental right—but for a nation aiming to become a $5 trillion economy, decent shelter must be seen as non-negotiable.
Whether it’s a young professional in Gurugram, a gig worker in Pune, or a family in suburban Chennai, everyone deserves a home they can afford—without sacrificing dignity, security, or their future.
