Finance Desk – The decision to rent or buy a home is a big one, and in 2025, it has become even more complicated due to rising property prices and changing economic conditions. While buying a home gives long-term security, renting offers flexibility and lower financial commitment.
Understanding Property Prices in India
- In cities like Delhi-NCR, home prices range between ₹7,500-15,000 per sq. ft.
- A 2BHK apartment in a good area costs around ₹1.2 crore, with an EMI of about ₹75,000 per month.
- In comparison, renting the same apartment costs only ₹30,000-35,000 per month.
- Tier-II cities like Chandigarh have more affordable rates at ₹5,000-8,000 per sq. ft., with a steady 6-8% appreciation in value.
When Buying a Home Makes Sense
Aman Gupta, Director of RPS Group, says that for people planning to stay in one place for more than 7 years, buying a home is a better choice despite maintenance and tax costs.
- Emerging locations like Dwarka Expressway offer better investment opportunities.
- First-time buyers can benefit from the PMAY scheme, reducing initial costs by 15-18%.
Why Renting Can Be a Smart Move
According to Shiv Garg, Director of Forteasia Realty, renting can be a better choice in premium locations like Gurgaon and South Delhi because:
- The money saved on a down payment can be invested in mutual funds or government securities, earning 7-9% returns.
- If someone plans to live in a city for less than 5 years, renting is the more cost-effective option.
- Renting provides financial flexibility without the risks of property price fluctuations.
Final Decision: Rent or Buy?
Svaraj Anand, COO of Neo Developers, believes the right choice depends on personal financial goals and lifestyle needs.
Buying is better for people who want long-term stability and are financially secure.
Renting is better for those who relocate frequently, prefer flexibility, and want to invest in higher-yield assets instead of real estate. (Image/Pixabay)
