Archive · 19 Sep 2025
Real Estate Sacrifice: Education Costs Outpace Property Gains
Imagine you have a house, and you're hoping to sell it to pay for your kid's college.
But, the cost of college has gone up much faster than the value of your house.
This means you might not get enough money from selling your house to cover the costs.
Families are increasingly borrowing money to pay for education, which can be a problem later.
The author suggests that families consider alternative funding methods like loans and careful financial planning instead of relying solely on selling their homes, as it could impact their own future security.
Education costs are rising faster than property values, creating financial strain for families.
Families often sell property to fund education, but returns barely cover the costs.
Education inflation averages 10-12% annually, far exceeding salary growth.
Outstanding education loans nearly doubled between 2019 and 2025.
Selling property can jeopardize families' long-term financial security and retirement plans.
- Who
- Families and students seeking higher education.
- What
- The financial challenges of funding higher education, especially concerning the use of real estate.
- When
- The analysis covers current market conditions and trends over the last decade.
- Where
- India, with focus on property markets and higher education costs within the country and abroad.
- Why
- Because education costs are rising faster than property values, making it difficult for families to fund education by selling property.
- Education Inflation
- 10-12% annually
- Salary Growth
- Around 6% annually
- Education Loan Increase (2019-2025)
- Nearly doubled (95%)
- Outstanding Education Loans (Late 2024)
- Over ₹1.2 lakh crore
- Cost of MBA
- ₹20-25 lakh
- Cost of Medical Degree
- Over ₹50 lakh