India's home prices and rent costs are rising faster than inflation this year. Home prices are expected to go up by 6.5%, while rent costs may increase between 7.0% and 10.0%. In comparison, inflation is expected to be around 4.3% to 4.4% over the next two years.

The main reason for this price rise is the high demand for homes, especially from wealthy buyers. Many middle-class and lower-income families are struggling to buy homes, so they are choosing to rent instead.

This increased demand for rentals is making rents even more expensive.

Big cities like Mumbai, Delhi-NCR, Bengaluru, and Chennai are seeing the highest price hikes. Experts predict that home prices in these cities will increase between 5.8% and 8.5% this year and next year.

This makes homeownership more difficult, forcing many people to stay in rented homes.

Even though the Reserve Bank of India has cut interest rates, it has not helped much. Wages are not increasing fast enough, and many people do not have enough savings to buy a home.

As a result, the housing market is becoming dominated by the wealthy, making it even harder for the middle class to afford homes.

Experts believe that the government needs to step in and create more affordable housing. Without such action, homeownership will remain a distant dream for many, and rents will continue to rise.

If things do not change, finding an affordable home in India will only get harder in the coming years.