Do Homes Priced Over Rs 1 Crore Constitute 50% of Total Sales in India?
Synopsis
Explore the significant shift in India's housing market where homes priced over Rs 1 crore account for half of total sales, while affordable housing segments face a major decline. Discover the implications for buyers and developers in this evolving landscape.
Key Takeaways
50% of total residential sales now in premium segment.
17% YoY decline in affordable housing demand.
Developers pivoting to premium housing .
Significant 28% drop in new affordable launches.
Structural shifts in market dynamics.
New Delhi, Feb 16 (NationPress) The Indian residential real estate market continues to show strong resilience, underpinned by a stable macroeconomic environment and recent repo rate reductions, according to a report released on Monday.
Homes in the premium segment (priced at Rs 1 crore and above) now account for 50 percent of the country’s total annual sales.
Despite the overall market maintaining resilience with 348,207 units sold in 2025, sales of homes priced over Rs 1 crore saw a 14 percent year-on-year (YoY) increase. In contrast, the affordable housing sector – homes priced under Rs 50 lakh – experienced a 17 percent YoY decline, as stated in the report by Knight Frank India for the second half of last year (H2 2025).
The report highlights that the slowdown is primarily limited to lower-priced segments. As a result, properties priced above Rs 1 crore now dominate the market, while affordable housing sales have significantly decreased across India.
This trend is particularly pronounced in cities like Delhi-NCR, as noted in the report.
“The affordable housing sector is under significant pressure, with demand down by 17 percent YoY and supply contracted more severely by 28 percent YoY. This divergence points to a structural shift in the market, as both capital allocation and buyer preference increasingly lean toward higher-value homes,” stated Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India.
The notable slowdown in new affordable launches underscores developers’ hesitance to invest in this segment, as their focus shifts to premium housing, which is currently shaping the housing cycle.
In 2025, the affordable housing market faced a considerable supply shortage, as developers moved away from lower-priced projects, resulting in a 28 percent YoY decrease in new launches for units priced under Rs 50 lakh and a 9 percent decline in the Rs 50 lakh–Rs 1 crore range.
This shortage of new supply contributed to a 7 percent contraction of unsold inventory in the sub-Rs 50 lakh segment, even as the broader market shifted significantly towards premium offerings, according to the report.
Point of View
I observe that the current state of the housing market reflects a significant shift towards premium properties. This trend not only highlights changing consumer preferences but also indicates a need for developers to innovate and adapt to market demands. The resilience of the higher-end market amidst challenges in affordable housing suggests a strategic pivot for future developments.
NationPress
2 May 2026
Frequently Asked Questions
What percentage of total home sales in India are priced above Rs 1 crore?
Homes priced above Rs 1 crore constitute 50% of total sales in India as reported for 2025.
How did the affordable housing segment perform in 2025?
The affordable housing segment, defined as homes priced under Rs 50 lakh, experienced a significant decline of 17% year-on-year.
What regions are particularly affected by this trend?
The trend is especially evident in urban areas like Delhi-NCR, where the demand for affordable housing has dropped.
What is causing the decline in affordable housing?
The decline is attributed to decreasing demand and a sharp contraction in supply, with developers shifting focus to premium housing.
What does the future hold for the affordable housing market?
The future may involve a strategic rethink for developers as they respond to market demands, possibly indicating a reduced focus on affordable housing.
