NEW DELHI: India’s residential market saw a sharper tilt towards higher-value homes in 2025, with units priced above ₹1 crore accounting for 50% of total annual sales, even as affordable housing demand continued to weaken, according to a recent report by Knight Frank India.
Overall housing sales stood at 3,48,207 units in 2025. While sales of homes priced above ₹1 crore rose 14% year-on-year (YoY), demand for units priced below ₹50 lakh declined 17% YoY. The mid-segment category priced between ₹50 lakh and ₹1 crore also saw an 8% YoY drop in annual sales.
The report noted that the slowdown was largely confined to the lower ticket-size categories, underscoring a structural shift in buyer preference and developer focus. The trend was particularly visible in Delhi-NCR, where overall residential sales fell 9% YoY, while affordable housing sales in the region dropped 25% YoY.
On the supply side, developers curtailed new launches in the lower price bands. New launches in the sub-₹50 lakh category contracted 28% YoY in 2025, while launches in the ₹50 lakh–₹1 crore bracket declined 9%. The pullback in fresh supply led to a 7% reduction in unsold inventory in the sub-₹50 lakh segment.
Shishir Baijal, international partner, chairman and managing director of the company said the residential market remains supported by a stable macroeconomic environment and recent repo rate cuts, but affordable housing is facing pronounced pressures.
“The affordable housing segment has seen demand decline 17% YoY, while supply has contracted more sharply by 28% YoY. This divergence signals a structural shift in the market, as capital allocation and buyer preference increasingly gravitate toward higher-value homes,” he said.
According to the report, the growing dominance of premium housing reflects both buyer aspirations and developer strategy, with capital increasingly flowing toward higher-margin projects amid sustained demand in the upper price brackets.
