Should You Buy A Home? Analysing The Rental Versus EMI Proposition In Indian Cities

Take a typical 2BHK apartment in Pune’s Hinjewadi:

Rent: Rs. 25,000/month

Purchase price: Rs. 60–70 lakh

EMI: Rs. 55,000–Rs. 65,000/month (with 20% down payment)

In metros like Mumbai or Delhi-NCR, this rent–EMI gap is even more pronounced, sometimes pushing the breakeven period to over 15 years. While tax benefits (under Sections 80C and 24) ease the burden slightly, the financial commitment remains significant. Renting keeps capital free. Buying builds equity — but demands planning, patience, and responsibility.

The Rise of Strategic Thinking: Rent here, own there. Today’s urban Indians, especially younger professionals and NRIs, are blending both worlds: “Live on rent in the city. Buy property where growth is higher.”

Whether it’s an apartment in a Tier 2 city, a vacation home in Goa, or an investment in their hometown, this hybrid approach focuses on value, not just emotional satisfaction.

Final thought

It’s not just about property—it’s about priorities. Ultimately, whether you rent or buy depends less on market conditions and more on your lifestyle, future plans, and comfort with commitment.

If you’re seeking flexibility, mobility, or saving for another big goal—renting might be your answer.If you’re ready to set roots, think long term, and build an asset—buying may be the right move.

As I often remind my clients; “You can change your house. You can’t change your mindset as easily.”

The writer is President- NAR India

Published on: Sunday, July 20, 2025, 07:00 AM IST