Property boom: Will real estate prices rise in 2027? CA cites stock market, gold trends, US green card as big reasons
Real estate has historically been a highly favoured asset class for Indians. However, a rare convergence of macroeconomic shifts, regulatory changes, and geopolitical hurdles is likely to push property prices to unprecedented highs over the next few months, according to a viral analysis by Chartered Accountant Sarthak Ahuja.
In a viral post, Ahuja said the domestic property market is bracing for a massive surge in demand that could peak soon and predicted that “real estate prices are about to blow up in India in 2027” because of a triad of domestic and global factors.
Volatile stocks and restricted gold
The first major catalyst, Ahuja said, is the shift in investor sentiment away from traditional financial instruments. With recent market corrections and global economic headwinds, retail and institutional investors are seeking safer harbours.
“The stock markets are falling, and people are scared they may not come up till late 2027,” Ahuja noted.
Compounding this equity market anxiety, he said, are the recent regulatory hurdles in the commodities space, especially gold.
“…the other option people had to invest in… Gold… has now been restricted by SEBI, where they have told funds to not accept any investment in Gold Fund of Funds … to prevent imports of gold,” Ahuja pointed out.
With two primary investment avenues facing friction, he explained that “people find comfort in tangible assets, and the only tangible asset that seems legit to hold is real estate.”
US immigration curbs and the NRI safety net
The second driver, CA Ahuja said, stems from shifting immigration policies in the West, which are prompting affluent expatriates to funnel their wealth back home.
“As the US now takes steps to freeze green card issuance to NRIs working in the US tech companies… where will they put their money…” Ahuja asked.
Faced with an uncertain future abroad, Ahuja observed that Indian techies “wouldn’t want to invest any more in the US… they’d want to create a safety net and send that money to India and put it in a house here that they can either come back to… or will earn rentals while keeping their principal safe.”
Ahuja highlighted that “NRIs’ share of property deals used to be 7-10% in 2015-18 to roughly 18-20% now as per most RE analysts,” indicating a massive influx of foreign remittance into domestic brick-and-mortar assets.
Corporate data centre ‘gold rush’
The final pillar of Ahuja’s hypothesis is the aggressive institutional accumulation of land, driven by the artificial intelligence and cloud computing boom. “And now, with the data centre gold rush… large companies are lapping up on land,” he stated.
Outlining the scale of this corporate land grab, he noted, “Amazon bought 10 acres near Mumbai… TCS has reportedly picked up 88 acres near Pune and 200 acres in Andhra Pradesh… Lodha is planning a 1GW capacity across 100 acres.”
This institutional demand is fundamentally altering land valuations: “Because the ROI of a unit of land on data centres is much higher than land being used for housing or other commercial purposes… more corporates will go on to grab land for such purposes and certain corridors will see land prices skyrocket,” Ahuja explained.
While the exact trajectory of the real estate market remains to be seen, Ahuja concluded his viral post with a cautious disclaimer: “Just a hypothesis that I’m thinking about, and not to be considered as investment advice.”
