Acquiring one's own home is one of the biggest dreams for every Indian, as a brick house provides the family with a sense of security and belonging. According to the Home Credit India report titled 'The Great Indian Wallet 2026', for the middle and lower classes, buying a home has become the most significant financial goal. Furthermore, serious changes are occurring in the household budgets of Indians following the introduction of GST 2.0 in the country.
Despite rising inflation, people's confidence in their financial goals is growing. The report data shows that the dream of owning a home is becoming increasingly a priority. 31% of Indians from the lower and middle classes consider buying a home their primary financial objective within the next five years, which is 8 percentage points higher than last year. Notably, the desire to acquire housing is significantly higher among women than among men: 40% of women named this a priority for the next five years, compared to 29% among men. Meanwhile, 85% of people are confident in achieving their financial goals within the next five years.
Regarding the household budget, people felt some relief regarding daily necessities expenses in 2026. However, rent expenses have increased the financial burden. According to statistics and surveys, food remains the largest expense category in households in 2026, averaging 8,505 rupees (25% of total expenses), although this is 8% less than in 2025. At the same time, rent expenses have risen by 21%, reaching an average of 6,965 rupees per month, accounting for 21% of the total budget. Families spend 6,604 rupees monthly on children's education (20%), which is 12% more than last year. Additionally, 5,094 rupees (15%) is spent on transport (Commute), and 2,802 rupees (8%) on medical expenses.
After the implementation of GST 2.0, many family segments noted price reductions. Statistically, consumers felt the largest price drop (26%) on two-wheelers, and 25% noted a decrease in car prices. People also felt relief in the smartphone and home appliance segment (22%), medicines and healthcare (21%), and 19% of consumers reported lower prices for food and groceries. Among housing materials, 18% of people noticed a price reduction. Despite these savings, people are not wasting money but are directing the freed-up funds towards improving nutrition, education, health, and savings.
The desire to buy a home is growing at the same time that real estate prices are rapidly increasing. According to the latest RBI data, the housing price index across India grew by 1.1% in the quarter from April to June compared to the previous quarter. The annual growth rate of the housing price index was 3.6%. The largest jumps in property prices were observed in cities such as Chandigarh, Jaipur, Kanpur, Lucknow, and Thiruvananthapuram. Thus, buying a home is truly becoming a top financial priority for people. However, amid rising prices, it is crucial to find the right balance between savings, income stability, and paying monthly mortgage installments.