CAUSE
One question. One truth.
“Why is housing so expensive in Indian cities?”
Restrictive urban planning regulations, particularly low Floor Space Index (FSI) limits of 1.3 to 3.5, are the primary cause of high housing prices in Indian cities by severely constraining building density and limiting housing supply.
High confidenceStructural
CURRENT STATE
This regulatory bottleneck causes persistent supply shortages amid rising demand, as shown by 15 consecutive quarters of price increases and significant year-over-year price rises such as 32% in Delhi NCR and 24% in Bengaluru during Q3 2024.
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