New Delhi: A recent report reveals that homes priced at ₹1 crore and above account for half of all residential property sales in India. The trend highlights a growing demand for premium housing amid a resilient real estate market and supportive economic conditions.
Hence, the residential real estate market in India continues to demonstrate underlying strength, supported by a stable macroeconomic environment and recent reductions in the repo rate. Analysts say these factors are boosting buyer confidence and sustaining market momentum.
While the overall market remained resilient with 3,48,207 units sold in 2025 and sales of units priced over Rs 1 crore rose by 14 per cent year-on-year (YoY), the affordable housing segment – homes priced under Rs 50 lakh, experienced a significant decline of 17 per cent YoY, said the report by Knight Frank India for the second half last year (H2 2025).
The report notes that the slowdown is largely confined to lower ticket segments. Consequently, homes priced above Rs 1 crore now dominate the landscape leaving a comparatively much smaller footprint of affordable housing sales across India.
This trend was particularly evident in cities like Delhi-NCR, said the report.
“The affordable housing segment faces pronounced pressures, with demand declining 17 per cent YoY and supply contracting more sharply by 28 per cent YoY. This divergence signals a structural shift in the market, as capital allocation and buyer preference increasingly gravitate toward higher-value homes,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
The marked slowdown in new affordable launches highlights developers’ reluctance to commit capital to this segment, as they focus on premium housing, which is shaping the current housing cycle, he mentioned.
In 2025, the affordable housing sector faced a significant supply crunch as well, as developers pivoted away from lower-ticket projects, leading to a 28 per cent YoY drop in new launches for units priced under Rs 50 lakh and an 9 per cent decline in the Rs 50 lakh–Rs 1 crore category.
This lack of fresh supply resulted in 7 per cent contraction of unsold inventory in the sub-Rs 50 lakh segment, even as the broader market underwent a major structural shift toward premiumisation, the report said.
More Real Estate News on www.mediaeyenews.com
AI image/IANS
—IANS
