‘More expensive than US, Europe’: Executive slams ‘unchecked hyperinflation’ in India’s real estate

Yogen Shah, Supply Chain Director at Petrofac, has raised concerns about India’s soaring real estate prices, questioning why there has been no correction despite hyperinflation. In a LinkedIn post, he compared property rates in Indian metro cities to those in the US and Europe, highlighting the stark contrast in GDP and per capita income.  

Shah cited a recent example of a friend who purchased a 1,100 sq. ft. apartment with three bedrooms in a Mumbai suburb for ₹3.5 crore. “How do they fit 3 BR in 1,100 is beyond my imagination,” he remarked, calling the Indian real estate market “hyperinflated.” He attributed this to “black money of corrupt earners.”  

Expressing frustration over financial scrutiny in other transactions, Shah pointed out the lack of stringent checks in real estate deals. “For real estate, there are no such stringent requirements. You can purchase property in different family members’ names – who are not even earning. How?” he questioned.  

Shah also drew a comparison with the stock market, emphasizing that real estate prices do not correct despite environmental and infrastructure issues. “In the stock market, prices reflect a company’s performance. In real estate, nothing happens with change in air quality, pollution, water shortage, excessive traffic. More crowd, more price 🙃,” he wrote.  

Backing his argument with economic data, Shah noted, “US GDP is $27 trillion, and India’s is just $4 trillion. Per capita income in the US is $60,000 per annum, while in India, it’s barely $2,500. This is surprising.” Concluding his post, he stated, “I am not putting my money in Indian real estate, other than primary residential requirement. Are you?”  

The post quickly sparked debate, with users voicing concerns over inflated property prices and alleged market manipulation.  

One user criticized the state of urban infrastructure, saying, “I can’t even think about buying property at prices that are more than double in some places. No proper roads, private water supply, private electricity, and power cuts lasting 3-4 hours in summer. Prices are through the roof! Who is controlling and manipulating this market? God only knows!”  

Another user highlighted tax evasion, writing, “In India, colonizers have created a parallel system to evade taxes. Almost all residential plots are sold at double the registration value, with 50% of the payment made in cash.”  

Some users suggested policy interventions to curb investor-driven inflation. “We should limit how many real estate properties one can buy in a city. Investors with black money squeeze actual buyers and inflate the market. The government should not register more than one property per person in a city based on Aadhaar,” a user proposed.  

Another user called for stricter regulations on property ownership. “The government must curb ‘nameless property transactions.’ Properties should only be registered in the name of someone with a verifiable income source. Women empowerment laws are being misused in such deals, and rebates on property registration tax for women should be revoked.”  

However, not everyone shared the skepticism. One commenter pointed to strong demand in the luxury market, saying, “Gurgaon sold flats worth ₹100 crore each, and the inventory was sold out like hot cakes. The Indian real estate industry is booming because people want housing within city limits with all luxuries and amenities nearby. With rising incomes and easy financing, the working class remains the biggest chunk of homebuyers.”