Delhi Housing Crisis: Skyrocketing Property Prices Push Middle Class to the Edge
Soaring Property Prices Leave Home Buyers Stunned- Delhi’s real estate market has become a nightmare for aspiring homeowners. Property prices in Delhi-NCR have surged by 81% over the past five years, according to Anarock Group. This sharp increase, driven by growing demand, rising construction costs, and limited supply, has placed even modest homes far beyond the reach of middle-class buyers. A once-affordable two-bedroom flat now demands nearly Rs 1 crore, forcing many to give up or drastically lower their expectations.
Middle Class Struggles Amid Premium Property Boom- While luxury housing continues to flourish in prime areas like Jor Bagh, Golf Links, and Vasant Vihar—with average property values upwards of Rs 8 crore—the middle-income group is being pushed to the fringes. Flats once available for Rs 30–40 lakh are now being quoted at Rs 1.5–2 crore, pricing out young families and first-time buyers. Even rentals have doubled, with 2BHK units now costing Rs 18,000–20,000 per month, up from Rs 10,000 just a few years ago.
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Home Loans Rise, Defaults Loom- To keep up with rising costs, most buyers are relying heavily on home loans, often paying hefty EMIs alongside monthly rent. Industry insiders report a surge in loan applications, as families struggle to secure homes before prices climb even higher. However, with unstable job markets and delayed construction projects, defaults are rising too. Buyers often find themselves stuck paying both rent and EMIs for properties they don’t yet own.
Buyers Shift to Peripheral Areas Like Greater Noida- With Central and South Delhi now out of financial reach, many families are relocating to Greater Noida, Ghaziabad, and parts of Noida, where homes are relatively more affordable. For example, a 3BHK flat in Greater Noida rents for around Rs 20,000–25,000, compared to Rs 35,000 in Noida. Developers admit that shrinking margins in affordable housing have made them shift focus to premium projects, further widening the gap for budget-conscious buyers.
