Home prices set to soar faster on wealthy buyers' demand

Affordability Takes A Hit

- RAHUL TRIVEDI

HOME PRICES IN India are set to rise faster than expected, fuelled by demand from wealthy buyers, while a shrinking supply of affordable housing is likely to keep many stuck in ever more expensive rentals, a Reuters poll of property experts found.

The concentration of well-paying jobs in a handful of cities and stagnating wages has pushed home ownership out of reach for millions moving to urban areas for work, forcing most would-be buyers to rent.

Although Asia's third-largest economy grew 7.8% last quarter, faster than most major peers, experts warn the gains are increasingly captured by a small segment of the population of 1.4 billion, leaving job seekers on the sidelines. That inequality is spilling over into housing, where premium demand thrives but affordable options lag far behind. India now faces a deficit of about 10 million affordable homes, a gap Knight Frank projects could triple by 2030.