Rent Vs Buy In India: Which Makes More Financial Sense? Dilemma Explained – News18
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In 2025, rising property prices, fluctuating interest rates, and economic conditions influence the rent vs. buy debate. In Delhi-NCR, home prices range from ₹7,500-15,000 per sq. ft., with EMIs around ₹75,000, compared to ₹30,000-35,000 rent. Emerging areas like Dwarka Expressway offer strong investment potential. In…Read More
Buy Vs Rent in 2025
The debate between renting and buying a home has become more complex in 2025, influenced by rising property prices, fluctuating interest rates, and evolving economic conditions. While homeownership is often associated with financial security and long-term wealth creation, renting provides flexibility and financial liquidity.
In prime regions like Delhi-NCR, home prices range from ₹7,500-15,000 per sq. ft., making a 2BHK apartment an investment of ₹1.2 crore. Monthly EMIs for such a property hover around ₹75,000, compared to rental yields of ₹30,000-35,000 per month, offering an ROI of 3-3.5%. Emerging locations like the Dwarka Expressway promise greater appreciation, while established areas remain stable. In Tier-II cities like Chandigarh, lower entry prices (₹5,000-8,000 per sq. ft.) make homeownership relatively more accessible, with steady 6-8% appreciation.
Expert Insights On The Buying Proposition
Aman Gupta, Director of RPS Group, highlighted the improved buying proposition in Delhi-NCR for 2025, driven by stable interest rates and better infrastructure. He noted that for long-term residents (7+ years), purchasing property makes sense despite maintenance and tax costs. While South Delhi’s premium properties remain costly to own, emerging areas like Dwarka Expressway offer strong investment potential with growing connectivity. He also pointed out that first-time buyers benefit from the PMAY extension, effectively reducing initial ownership costs by 15-18%.
The Financial Perspective On Rent Vs. Buy
Shiv Garg, Director of Forteasia Realty Pvt. Ltd., emphasizes that the rent-versus-buy decision goes beyond just comparing EMI with rent. In 2025, buyers must consider the opportunity cost of their down payment, which could earn 7-9% through alternatives like mutual funds or government securities.
For high-value markets like Gurgaon and premium Delhi enclaves, renting and investing the difference makes sense for horizons under five years. However, long-term ownership brings tax benefits, emotional security, and inflation-proof growth. Buying becomes more favorable in peripheral areas with infrastructure growth, where entry costs are lower but appreciation potential remains strong. The rise of remote work has further expanded viable housing options beyond traditional commuting zones.
Financial And Lifestyle Considerations
Svaraj Anand, COO, Neo Developers said the decision to rent or buy a home depends on financial goals, lifestyle needs, and market conditions. Buying offers long-term stability, asset appreciation, and a sense of ownership but requires a hefty upfront investment, ongoing maintenance costs, and a long-term mortgage commitment. While EMIs are higher than rent, they build equity over time, making ownership a viable choice for those with financial security and long-term housing plans. However, rising interest rates and high property prices in metro cities can make buying challenging.
Renting, on the other hand, provides financial flexibility with lower upfront costs and no maintenance burdens. It suits individuals who prioritize mobility, career-driven relocations, or alternative investment opportunities in higher-yield assets. While rental prices increase annually, renting avoids the risks of fluctuating real estate values and market downturns. Ultimately, the choice hinges on individual financial stability, long-term aspirations, and lifestyle preferences.
The decision ultimately depends on individual financial goals, stability, and market dynamics.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
