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

A viral thread on Reddit has ignited a sharp debate over the real value of buying ₹1-crore-plus apartments in India, with users arguing that soaring prices, shrinking tax benefits, and disproportionate bank and government charges have eroded the original purpose of flats as an affordable housing option.

The user recalls how the flat system first emerged as a cheaper alternative to independent houses. “Land is expensive… In the beginning, when a row house used to cost ₹50 lakh, a flat was available at ₹20 lakh. The ratio was always 2.5x,” the user writes, adding that this fundamental affordability gap has collapsed as builders began packaging apartments with amenities to justify higher prices.

According to the post, facilities like swimming pools, play areas and gated security created a “picture perfect model” that made buyers overlook the shrinking price difference. “A ₹1-crore flat is now almost equal to a ₹1.5-crore row house,” the user argues, calling the shift a “builder’s trick.”

‘No tax benefit, no profit’

The Redditor points out that the new tax regime offers no home-loan incentives, eliminating one of the biggest motivations for salaried buyers to invest in property. With home loan interest effectively doubling the amount repaid over long tenures and government levies adding around 21% during purchase and sale, the post claims property appreciation must exceed 221% just for the buyer to break even.

Using an example, the user writes: “If you have a ₹2-crore flat, will you be able to sell it at ₹4 crore? And even at ₹4 crore, you’re not making a profit. Below that, you’re stuck with a loss.”

In contrast, the post argues that independent houses offer far better value and flexibility. Expanding or upgrading is significantly cheaper: “In a row house, with ₹25 lakh you can convert a 2BHK into a 4BHK. That makes perfect sense.”

‘Don’t buy just because 99.9% people do’

With AI expected to automate more jobs and income volatility increasing, the user warns that tying up 50% of one’s lifetime earnings in a flat that may not appreciate could leave many financially trapped.

“Some say buying a flat for self-accommodation is an emotional decision… But if it doesn’t make financial sense, it’s a waste. Just because 99.9% are doing it doesn’t mean you have to,” the post concludes.

The discussion has triggered 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 realities.