Buying vs Renting: Why Indians Still See Homeownership As A Long-Term Win
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Experts say despite low rental yields and high EMIs in cities like Mumbai, homeownership offers better long term value, lifestyle, security and stability than renting
India’s housing finance ecosystem is clearly expanding, supported by digital innovation and policy support.
With property prices rising sharply across India’s metro cities, the debate around buying versus renting a home has become more relevant than ever. While renting offers flexibility and lower upfront costs, experts believe homeownership continues to deliver stronger long-term value, especially in the premium and luxury housing segments.
According to recent market trends, rental yields in most Indian cities remain between 2% and 3.5%, while home loan interest rates are significantly higher. This has widened the gap between monthly EMIs and rents for similar properties, particularly in high-value markets like Mumbai.
However, industry experts say housing decisions should not be viewed only through short-term financial calculations.
Ashish Raheja, Managing Director and CEO of Raheja Universal, said the conversation around renting versus buying has become more nuanced in recent years as residential prices have appreciated faster than rental yields.
He noted that several micro-markets in Mumbai currently show high price-to-rent ratios, highlighting how expensive ownership has become compared to annual rental values. Despite this, he emphasised that a home is more than just a financial asset and should also be viewed as a long-term lifestyle and security decision.
Similarly, Nikhil Madan, Managing Director of Mahima Group, believes homeownership continues to offer stronger long-term value, particularly for affluent buyers investing in luxury housing.
He said today’s buyers are not just purchasing homes, but investing in lifestyle, security, stability and long-term asset appreciation. Madan added that rising rental values across urban markets are also encouraging many individuals to reassess the emotional and financial benefits of owning a home.
Experts further point out that owned homes allow individuals the freedom to personalise interiors and create living spaces aligned with their aspirations — something often restricted in rented accommodations. Frequent relocations associated with renting are also making long-term ownership a more stable and emotionally rewarding choice for many Indian families.
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