Hi... As per law your house belongs to you as long as you are alive and afterwards it belongs to your immediate family including your wife and dependent parents, and afterwards your kids, if any. This may change only when you prepare a legal 'Will' stating your heirs clearly.
Now, as per your emotional struggle, I would say it is a typical Indian middle class man's struggle. The story you are told and raised with holds no ground in the test of time.
This is a cyclic process. It happens in every generation. When we are young we believe we are doing the right thing to make space for ourselves and the family we have raised. But later when we reach that age we realize what we did wrong and why our parents behaved the way they do.
A simple solution to this problem is that you either rent or buy one more house/flat nearby in your budget now or maybe some time later and then decide to move your family or your parents to the other house.
Also, you can take help of your parents financially to build this new house. That way you can have a joint property with your parents and you can prepare a 'Will' of transferring ownership to your parents if you are afraid of your wife interfering with their rights to ownership.
Next Steps
Consult a Psychologist.
Family Therapy or Individual Therapy is required.
Health Tips
Mr. Gunjan Maithil
Senior Psychologist
Cell: nine six seven one three zero three one three four
Website: https://gunjanmaithil.wixsite.com/therapy
App: http://wix.to/fECHB08?ref=cl