‘₹1 crore flats make no sense anymore’: Viral post questions India’s soaring housing costs

A viral thread on Reddit has ignited a heated debate over the true value of buying apartments worth more than Rs 1 crore in India, with users claiming that rising prices, shrinking tax benefits, and disproportionate banking and government charges have eroded the original purpose of apartments as an affordable housing option.

The user remembers how the flat system first appeared as a cheaper alternative to townhouses. “Land is expensive…Initially, when one house cost Rs 50 lakh, an apartment was available at Rs 20 lakh. The ratio was always 2.5 times,” the user wrote, adding that this basic affordability gap collapsed when builders started packing flats with amenities to justify the higher prices.

According to the post, amenities such as pools, play areas and security gates created a “picture-perfect model” that made buyers ignore the shrinking price difference. “A Rs 1 crore apartment is now almost worth a Rs 1.5 crore house,” says the user, calling the transformation a “construction scam.”

“No tax benefit and no profit”

The Redditor points out that the new tax regime offers no incentives on home loans, eliminating one of the biggest incentives for salaried buyers to invest in property. With home loan interest effectively doubling the amount paid over long periods and government fees adding about 21% during purchase and sale, post-claims property appreciation would only have to exceed 221% for a buyer to break even.

Using an example, the user writes: “If you have a flat worth Rs 2 crore, will you be able to sell it for Rs 4 crore? Even at Rs 4 crore, you are not making a profit. Less than that, you will still be stuck at a loss.”

In contrast, the article says that townhomes offer much better value and flexibility. Expanding or upgrading is much cheaper: “In a row house, you can convert a 2BHK into a 4BHK for INR 25 lakh. It makes perfect sense.”

“Don’t buy just because 99.9% of people do.”

With artificial intelligence expected to lead to the automation of more jobs and increased income volatility, the user warns that tying 50% of an individual’s income throughout his life to an apartment that may not increase in value may leave many financially trapped.

The publication concludes, “Some say buying a self-contained apartment is an emotional decision…but if it doesn’t make financial sense, it’s a waste. The fact that 99.9% do it doesn’t mean you have to.”

The discussion generated hundreds of responses, with many users echoing concerns about housing affordability, the changing economics of home ownership, and whether India’s apartment boom is now out of step with financial reality.