India home prices to rise 5 percent annually by 2028
Indian home prices will rise 5% annually through 2028 as developers focus on luxury projects. Rising rents and costs are squeezing middle-income buyers.
Average home prices in India are forecast to climb by 5% annually through 2028, as developers focus on high-end projects in a market increasingly dominated by affluent buyers. This growth trajectory follows estimated increases of 6% in 2026 and 5% in 2027, which are notably higher than the 3.6% rise calculated for 2025 based on central bank housing indices.
The shift toward luxury developments comes as builders find fewer incentives to create affordable housing for younger, first-time buyers. Vivek Rathi, national director of research at Knight Frank, noted that the premium segment offers more stability for developers seeking to mitigate rising costs.
