For generations, owning a home has been a symbol of success, stability, and progress. In India, however, the dream of homeownership is slipping further away for younger generations—particularly Gen Z (born 1997-2012). With skyrocketing property prices, stagnant wages, regulatory hurdles, and an unpredictable economy, owning a home is becoming an unattainable goal for many. When compared to the UK, where government interventions, better credit access, and stronger housing policies offer more support, the Indian housing market paints a much bleaker picture for young buyers.
In India’s biggest cities—Mumbai, Delhi, Bengaluru—the cost of housing has soared, leaving young buyers struggling to keep up. Property prices have outpaced wage growth, making homeownership an almost impossible dream for Gen Z. In a country where housing is increasingly treated as a speculative asset rather than a basic necessity, the average citizen is pushed out of the market. Developers are catering to the luxury segment, while affordable housing options remain scarce.
Legal Roadblocks: The lack of price controls and rent regulations in India exacerbates the affordability crisis. Without any meaningful legal protection for homebuyers, real estate remains largely unregulated, allowing developers and investors to inflate prices freely.
A Better Picture in the United Kingdom: In contrast, the UK offers more balanced solutions. While property prices have also risen, the government has put in place protective measures such as rent controls, affordable housing mandates, and shared ownership schemes to make homeownership more accessible. The Help to Buy initiative, for example, allows first-time buyers to purchase homes with smaller deposits, offering a stark contrast to India’s laissez-faire approach.
Stagnant Wages and Economic Insecurity
While India’s GDP has grown in recent years, wages have not kept pace with rising living costs, especially for Gen Z. Young Indians are facing uncertain job markets, with many stuck in low-paying gig economy jobs or entry-level positions. With inflation outstripping income growth, saving for a home feels like an impossible task.
Legal and Structural Barriers: The Indian employment system offers little support in terms of job security or social welfare programs. Most young workers do not have access to benefits like healthcare or retirement plans, making it even harder to save. Additionally, housing finance laws require hefty down payments—often 10-25% of a property’s value—far beyond the reach of many young people.
Comparing to the UK: The UK offers a more secure social framework. Government-backed loans, social security benefits, and unemployment support give young people a buffer against economic volatility. The UK also has more affordable mortgage schemes, such as shared ownership and equity loans, which help first-time buyers access the housing market despite rising prices. In India, however, young people are left with limited options—often choosing to rent or face insurmountable debt.
Regulatory Gaps and the Developer-Dominated Market
India’s real estate sector suffers from inefficiencies, weak zoning laws, and a lack of transparency. Despite attempts at reform through the Real Estate (Regulation and Development) Act (RERA), progress has been slow, and many builders continue to prioritize high-end developments over affordable housing. The system is bogged down by bureaucratic delays and a lack of enforcement, leaving Gen Z and Gen X in a market where speculative investors and large developers dominate.
Legal Shortcomings: RERA, while a step in the right direction, is still not fully functional in many parts of the country. Delays in land acquisition, approval processes, and a lack of regulatory enforcement allow investors to drive up property prices while young buyers are left behind. The legal safeguards that exist are insufficient to curb speculative pricing, putting affordable housing even further out of reach.
A More Transparent System in the UK: The UK, while not free of its own housing problems, offers a much more transparent system. Stronger regulations and government initiatives, such as affordable housing quotas and housing development schemes, help increase the supply of homes. The UK government also regulates the property transaction process to ensure fairness and transparency, making it a more navigable market for first-time buyers.
Limited Access to Credit and Mortgage Loans
Securing a mortgage in India is increasingly difficult, particularly for young, first-time buyers. High interest rates, stringent eligibility criteria, and large down payments make it nearly impossible for those without significant savings or stable incomes to qualify for loans. The legal framework for housing finance is also restrictive, with many young buyers excluded due to their lack of credit history or secure income sources.
Credit Barriers: India’s housing finance system, overseen by the National Housing Bank (NHB), is not designed to accommodate younger buyers with irregular incomes or poor credit scores. This leaves Gen Z and Gen X with little recourse, as even commercial banks are hesitant to lend to individuals without a proven financial track record.
The UK’s Mortgage Market: In contrast, the UK offers a much more accessible mortgage market, especially for first-time buyers. Government schemes like Help to Buy and shared ownership allow young people to enter the housing market with lower deposits and more favorable loan terms. Lower interest rates and more flexible lending criteria make homeownership a possibility for more people, even in expensive cities London.
India’s housing market needs urgent reform. There is a pressing need for stronger regulations, affordable housing initiatives, and policies that promote wage growth and provide financial support to first-time buyers. Without these changes, homeownership will remain an elusive dream for the vast majority of India’s youth, leaving them to watch as their peers in other parts of the world navigate a far more accessible path to owning their homes.
