Home for Nikhil Kamath

The problem is not that Nikhil Kamath has changed his views on buying a house. The problem is that social media makes the average middle class person believe that it is worth following in the footsteps of Nikhil Kamath. The man’s fortune exceeds $3 billion. You have 30 thousand rupees. His choice cannot be yours. He could buy 10 luxury houses and not feel a thing. Your compulsions are completely different.

So, whether they like it or not, the average middle-class family is forced to live in rented houses and then go through moving house every few years.

Unfortunately, this scenario is unlikely to change anytime soon. This is due to extreme income and wealth inequality in India. Most of our national income and wealth is concentrated in the hands of a tiny minority at the top. They have to constantly invest and reinvest in new assets. This way, even if they don’t need new homes, they will put some of their wealth into real estate. This means that property prices will continue to be inflated and unaffordable for the middle class.

In fact, someone as rich as Nikhil Kamath has done us a favor by not buying a house until now. If India’s super rich stop investing in real estate, prices will correct. Then and only then will the average Indian family be able to afford a house; not as a financial asset, but as a home.

(The author was the Senior Managing Editor of NDTV India and NDTV Profit. He tweets @Aunndyo2023. These are opinions. The views expressed above are his own. The Quint does not endorse or take responsibility for them.)