Affordable homes are disappearing

The share of newly launched homes priced below ₹75 lakh has fallen sharply from 47% at the end of 2021 to just 17% at the beginning of 2026. In contrast, the share in supply of homes priced between ₹1.5 crore and ₹3 crore has almost doubled, rising from 16% to 31% and becoming the largest segment in India’s residential market, according to an analysis by Magicbricks Research.

For buyers, this change reflects a very new reality. The days when new project launches were dominated by affordable housing seem to be coming to an end. Instead, developers are increasingly focusing on mid-premium and premium homes, where demand remains strong and profit margins are better.

This trend is driven by a combination of factors. Rising land prices, high construction costs, rising compliance expenses and changing buyer preferences have driven developers towards high-ticket projects. Also, the growing base of affluent buyers in urban India and rising household incomes have supported demand for larger and more premium homes.

In particular, the data shows that the shift towards premium housing has now stabilised. Across the major ticket-size bands, supply shares have remained largely unchanged over the past year, indicating that the market is no longer moving, but rather settling into a new equilibrium.

The report said that while luxury housing expanded significantly between 2021 and 2025, growth in this segment has started to stagnate. Homes priced above ₹5 crore now account for about 9% of new supply, compared to just 2.5% four years ago, but their share has remained broadly stable in recent quarters.

Meanwhile, the M ID-income segment between ₹75 lakh and ₹1.5 crore has displayed remarkable stability, collectively contributing about 31% of the national supply across the cycle. This segment continues to act as an important stabilizing force in the market.

NCR seems to be improving after a period of rapid premium expansion, with supply gradually moving towards the ₹1-3 crore segment. MMR has seen selective growth in luxury launches, while Bengaluru has maintained a steady premium and luxury-driven trajectory supported by strong end-user demand. Hyderabad continues to be one of the fastest growing markets, although its supply trends are comparatively more volatile

For other metros.

According to Magicbricks Research, the next phase of growth for the residential sector will be driven less by changes in the ticket-size mix and more by sustained absorption levels. The market has largely completed its premiumization cycle, with future supply growth dependent on maintaining healthy demand across key mid-premium categories.

The findings also reinforce the need for targeted interventions to revive affordable housing supply. Rising land costs, construction expenditure and development economics are hampering new launches in the sub-₹75 lakh category, limiting the segment’s share in organized residential supply.