The Practical Guide: How to Own a Home Despite Rising Property Prices

Urban lifestyles are evolving. Post-pandemic, people are leaning toward 3BHK homes in search of spacious living and better amenities. However, the dream of home ownership is becoming a burden as rising property prices lose pace with the incomes of the lower and middle classes. According to a recent report by Square Yards, despite a strong desire for 3-bedroom homes, the average Indian family has to spend 12 years’ worth of their total income to own a house. Consequently, many are compromising their luxury aspirations and opting for 2BHK homes that fit their actual budgets.

The Reality in Hyderabad and Metros:

In India’s major metro cities, the average price of a 3BHK home is Rs. 2.7 crores. This figure is based on data collected from RERA-registered projects in 2024 and 2025. With the average family annual income hovering around Rs. 23 lakhs, buying a home has shifted from being a basic need based on income to a massive capital investment.

Supply Imbalance:

The market has split into two segments: luxury housing for high-income earners and value-based housing for the middle class. Nearly 48% of the 3BHK homes launched in the past year are priced well beyond the “affordable” limit. Only 11% of residences are truly within reach for an average-income family. Builders attribute this to soaring land prices and construction costs.

The Additional Burden:

Buying a home isn’t just about the sticker price. It involves significant upfront savings, long-term EMIs, parking charges, and amenity fees. Taxes like GST and registration charges add further weight to the financial load.

Regional Disparities:

Developing areas on the city outskirts are keeping the common man’s dream alive, while premium central locations are becoming playgrounds for the wealthy. In Hyderabad’s IT corridor, prices are skyrocketing, forcing buyers to compromise on location or infrastructure.

Who is Buying?:

Real estate experts categorize buyers into three groups:

1. First-time Buyers: Mostly those with a family income of Rs. 12-25 lakhs.
2. Upgraders: Those earning Rs. 25-50 lakhs who already own a home but want something better.
3. Investors: Those with an annual income above Rs. 50 lakhs who buy primarily for returns.

How to Make it Possible?:

The report suggests that price alone doesn’t determine affordability—EMIs do. A Rs. 2 crore home might be manageable for one person but a burden for another depending on their debt capacity.

Since prices vary drastically within the same city, choosing the right location is the ultimate key. By selecting an emerging area, you can achieve a similar lifestyle for 40-50% less cost. The report advises buying in areas with upcoming Metro lines, expressways, or new employment hubs before prices spike. This strategy allows first-time buyers to fulfill their dreams without needing to change jobs or move too far from the city.