India's real estate market is an enigma. On one hand, home prices in major cities like Mumbai, Delhi, and Bengaluru are absurdly unaffordable, with average rates soaring beyond the reach of middle-class buyers. On the other hand, India has a staggering 11 million vacant homes, as per the Economic Survey 2021-22.
How did we arrive at this bizarre contradiction? Why are people struggling to afford a home while millions of units remain locked and lifeless? The answer lies in greed, flawed policies, and speculative hoarding that have turned housing into a commodity rather than a necessity.
Homes Built for Investors, Not Residents
The core issue is that developers and investors don’t build homes for living; they build homes for trading. Here’s the brutal truth:
40% of Mumbai's housing stock is vacant – yet it remains one of the most expensive cities to buy a house.
Delhi NCR has over 1.5 lakh unsold apartments (Knight Frank, 2023), yet new luxury projects are announced every month.
Bengaluru has over 80,000 unsold units, while young professionals struggle with sky-high rents.
The problem? These houses aren’t made for the people who need them—they’re investment assets. Ultra-rich individuals and corporate entities buy homes and keep them empty, waiting for prices to rise. The result? Artificial scarcity and unaffordable prices.
Why Affordable Housing Is a Joke
Developers and policymakers love to throw around the term "affordable housing", but it’s a scam.
The government defines affordable housing as homes under ₹45 lakh. But where exactly in Mumbai or Delhi can you find a livable home at this price? Nowhere.
Banks and NBFCs prioritize home loans for the upper-middle class, ignoring the lower-income groups that actually need housing.
Rental housing policies are antiquated, leading landlords to demand outrageous deposits and make renting an unpleasant experience.
Meanwhile, government-backed affordable housing schemes like PMAY (Pradhan Mantri Awas Yojana) have largely failed to meet their targets, with massive delays and allegations of corruption.
Land Hoarding and the Government’s Role in This Mess
Real estate is the biggest money-laundering machine in India. Developers hoard land, delay construction, and push up prices while bribing authorities to look the other way.
In Delhi NCR, developers have been accused of stalling projects for over a decade, leaving thousands of buyers stranded.
DDA (Delhi Development Authority) holds thousands of acres of land but refuses to release it for genuine affordable housing.
State governments fail to implement Vacant Property Tax, which could discourage hoarding and force owners to put houses on the market.
A Broken Rental Market
Renting in India is another nightmare. Most landlords prefer to keep their properties empty rather than deal with tenants. Why? Because India’s rental laws are outdated and favor tenants over landlords, making eviction nearly impossible. The fear of litigation and non-payment drives property owners to leave homes unoccupied rather than rent them out.
Yet, the rental market is completely unregulated—leaving tenants at the mercy of exploitative landlords who demand excessive deposits, enforce bizarre rules, and increase rents arbitrarily.
The Real Solutions Nobody Talks About
We don’t need more skyscrapers or "luxury" housing projects. We need policy overhauls to stop real estate speculation and prioritize actual housing needs. Here’s what India needs to do:
Vacant Home Tax: Countries like Canada and Singapore tax empty homes heavily to discourage hoarding. India must do the same.
Stronger Rental Laws: Protect landlords while ensuring tenants aren’t exploited. Encourage long-term rental agreements with legal clarity.
End Real Estate Corruption: Crackdown on black money in real estate, enforce strict timelines for project completion, and penalize developers who delay possession.
Government-Owned Affordable Housing: The government should build and rent out homes at regulated prices instead of relying on private developers.
Land Reforms: Stop land hoarding by corporations and force unused land into productive housing.
Will India Fix This Mess?
The real estate bubble is a ticking time bomb. If prices continue to rise while homes remain empty, we will see a full-blown economic crisis like the 2008 housing crash in the U.S.
Until then, young Indians will keep paying ridiculous rents, the middle class will never own a home, and India will continue to be the land of homeless people and empty houses.
The question is—will the government and industry take real action, or will we let the housing crisis spiral into an irreversible disaster?
Let’s hear your thoughts. Are you stuck in this housing paradox?
Comment below and share your experience.
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