However, land is the most politically charged investment in India which is controlled by vested and powerful interests once over a certain threshold. It is not that straightforward. Compared to income , houses are very expensive. FSI is very low in India even with Transit oriented development finally becoming popular now. We may not have US style suburbia , however the GINI coefficient or anything similar calculated for per person area availability to live, is going to be significantly skewed.

For example, in Mumbai average people barely find more than few sq ft to live in whereas families like Godrej control land worth approx 10 b $ in the city itself. Moreover the Godrej family do not want the entire land to be used for development per se and are unwilling to part with some of it for developmental infrastructure projects. The moral of the story is that it is the same (if not worse) as any other country.

The rental yield on houses in India can be as low as 2% (source: Personal) which should in theory lead to crash in housing prices, but that is not happening as population in city will constantly increase with rural to urban migration.