For most families, the price of a home is influenced not only by construction costs but also by location, infrastructure, approvals, financing and, importantly, the cost of land.
When well-connected and properly serviced land becomes expensive, homes generally become smaller, taller or located farther from established city centres. This is already changing how developers plan projects and how families decide where they can afford to live.
In my view, rising land values are not automatically negative. Prices may increase because an area receives better roads, public transport, employment opportunities and essential services. In such cases, the increase may reflect genuine development.
The concern begins when prices rise mainly because of speculation, announcements or unrealistic expectations. Buyers then pay for a future that may take years to arrive—or may never arrive.
Affordability is more than the purchase price
Developing peripheral locations can improve affordability, but only when connectivity, water, drainage, schools, healthcare and daily conveniences develop alongside housing. A cheaper home located far from employment may eventually cost a family more through commuting expenses and lost time.
I advise buyers not to assume that every piece of land or every property must continuously appreciate. They should examine legal title, sanctioned plans, actual infrastructure, occupancy, rental demand and resale activity. Under RERA, homebuyers are entitled to obtain information concerning sanctioned plans, layouts and the project-completion schedule.
Planning and supply must keep pace
India’s cities need more serviced land, transit-oriented development, efficient redevelopment and transparent approvals. Developers must create practical homes that use space intelligently, while governments must ensure infrastructure keeps pace with expansion.
My personal view is that land in strong locations will continue to remain valuable. However, homeownership need not become impossible if planning, infrastructure and housing supply improve.
The real question is not whether India can stop land values from rising. It is whether we can create well-planned housing faster than speculation raises prices.
—Tushar Kumar
Sources and context
The broader housing-price context was checked against the National Housing Bank’s NHB RESIDEX release for June 2026. The index reports residential property valuations and is not a separate land-price index. Buyer-information rights were checked against the Ministry of Housing and Urban Affairs’ RERA FAQs. The conclusions are my personal assessment.