According to a Reuters survey of property analysts, Indian house prices are projected to rise at a rate not seen in half a decade this year, but increasing borrowing rates will constrain affordability, especially for first-time buyers.

In comparison to other foreign markets that soared higher as families hurried to buy extra living space, India’s property market remained relatively quiet during the epidemic due to a lack of demand. Those markets are now beginning to cool.

However, as most employees return to work with improved vaccination rates and fewer COVID-19 instances, India’s property market has sparked, as has the return of huge institutional investors.

According to a May 11-27 Reuters survey of 13 property analysts, home prices are predicted to rise 7.5 percent countrywide this year, the strongest gain in five years, up from 5.0 percent expected in a March poll. The average house price is expected to grow 6.0 percent next year and 6.0 percent in 2024.