[![Peaceful Loans](../../assets/logo-horizontal.png)](/index.html) [ Book a Free Call ](https://forms.zohopublic.in/mangeshpeacef1/form/Contactforsupport/formperma/_ps6Hq-7OvODRTnKowl1_FxyIIKmnPIywn1z6WV7i4M) [ WhatsApp Us ](https://forms.zohopublic.in/mangeshpeacef1/form/WhatsAppButtonForm/formperma/F2z-Z2bBLbkttGWHBPPvrqSwlSXzd_WnD4sUAWNnjh4) From Founder's Desk 18 July 2026 Product Strategy · Expert Insight # Why Property Prices (Almost) Never Fall in India ![Mangesh Zope](../../assets/founder.jpeg) Mangesh Zope Founder, Peaceful Loans · IIM Calcutta Alumnus I sat down this weekend to read Vivek Kaul’s excellent two-part BasisPoint series, featuring [Why Housing Prices (almost) Never Fall in India](https://basispointinsight.com/Story/Author/why-housing-prices--almost--never-fall-in-india-_ab421691f74e.html) and [How Expensive Homes Are Shrinking India's Future](https://basispointinsight.com/Story/Author/how-expensive-homes-are-shrinking-india-s-future-_74ee11007cab). As someone who spends all day talking to clients looking to secure big-ticket home loans (typically upwards of ₹2 Crore to ₹10 Crore) at Peaceful Loans, this hits incredibly close to home. Almost every week, a client asks me: *“Mangesh, these prices look completely detached from reality. Transaction volumes are falling, builders are complaining, yet prices aren't budging. Should I wait for a 20% correction?”* My answer is always a mathematical "No." And Vivek Kaul's analysis perfectly codifies the structural reasons why. India's housing market doesn't behave like a normal market because **it isn't one.** Here is our curation of the six core reasons why property prices rarely correct in India, and what it means for your home buying strategy. ## Slide Deck Summary Flip through our quick summary slide deck below, or download the full presentation: [ ![Why Property Prices (Almost) Never Fall in India Slide Deck](page-1.png) ](why-prices-of-homes-never-fall-in-india.pdf) [ Download PDF Slide Deck ](why-prices-of-homes-never-fall-in-india.pdf) ## The Big Idea Prices staying firm even in a soft market isn't magic. It's the product of wealth, incentives, and psychology as much as supply and demand. Here are the six reasons prices almost never fall—and what it means for you. ## 1. Owners Simply Don't Need to Sell Much of India's housing sits with the top 1%, bought as a status symbol or a store of wealth. They can keep units locked and empty for years — so there's no pressure to ever cut the price. > "Millions of homes are owned by people who can afford to wait indefinitely." > — **Vivek Kaul, BasisPoint Insight** ## 2. The Market Never Actually "Clears" Real demand needs both desire and the ability to pay. When buyers can't meet the ask and sellers won't budge, transactions dry up — homes stay vacant instead of getting cheaper. > "Weak demand doesn't lower prices — the market just waits. Sometimes for years." > — **Vivek Kaul, BasisPoint Insight** ## 3. Anchoring Keeps Sellers Hopeful A steady drumbeat of "premium projects lapped up" convinces owners that prices only ever rise. That belief makes them even more reluctant to discount what they already hold. > "Where's the demand that sets that price? It's all in the mind." > — **Vivek Kaul, BasisPoint Insight** ## 4. Builders and Brokers Own the Narrative The people who set the story are paid to say prices only climb. With no timely, public price index, the years prices stagnated or fell — NCR, 2013 to 2020 — barely get a mention. > "The narrative is totally controlled by real estate companies and consultants." > — **Vivek Kaul, BasisPoint Insight** ## 5. It's Where Speculative Capital Rests Cash from IPO exits, promoter stake sales, and undeclared income keeps flowing into property as a "safe" store of value. That inflates premium demand and squeezes genuine middle-class buyers out. > As the wealthy buy up premium homes, builders shift upmarket too — edging the middle-class buyer out of the market entirely. ## 6. The "Returns" Ignore the Real Math Maintenance, illiquidity, and the time-value of money rarely enter the calculation when people tout real-estate "returns." Meanwhile, flats bought purely as investments sit locked — quietly removing supply from the real market. > ~1 crore flats lie vacant across India — bought as investments, not homes. > — **NREDC, 2024** ## Full Presentation Slide Deck Flip through the slides below to see the complete analysis: ![Slide 1](page-1.png) ![Slide 2](page-2.png) ![Slide 3](page-3.png) ![Slide 4](page-4.png) ![Slide 5](page-5.png) ![Slide 6](page-6.png) ![Slide 7](page-7.png) ![Slide 8](page-8.png) ![Slide 9](page-9.png) ❮ ❯ ## What This Means For You Don't wait for a "correction" that may never come. For a genuine end-user, firm prices are a signal to lock in the right property — and the right loan structure — sooner rather than later. The real skill is separating FOMO from a sound, affordability-first decision. **₹ 2 cr+ Home Loan Experts** Talk to us before you decide. [Book a Free Call with Peaceful Loans](https://forms.zohopublic.in/mangeshpeacef1/form/Contactforsupport/formperma/_ps6Hq-7OvODRTnKowl1_FxyIIKmnPIywn1z6WV7i4M). ### Sources & References - Part 1: [Why Housing Prices (almost) Never Fall in India](https://basispointinsight.com/Story/Author/why-housing-prices--almost--never-fall-in-india-_ab421691f74e.html) by Vivek Kaul - Part 2: [How Expensive Homes Are Shrinking India's Future](https://basispointinsight.com/Story/Author/how-expensive-homes-are-shrinking-india-s-future-_74ee11007cab.html) by Vivek Kaul - Author Profile: [Vivek Kaul on LinkedIn](https://www.linkedin.com/in/vivekkaull/?skipRedirect=true) Before You Sign Anything ## Talk to us first. It's free. Free advisory call. 30 minutes. No strings. Just the unvarnished truth about your loan agreement — from someone who works only for you. 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