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Sales of affordable homes priced below INR 50 lakh declined 23% year-on-year to 16,273 units during the January–March quarter across eight major cities, according to Knight Frank India. The drop has been attributed to reduced new supply amid rising input costs, particularly land. Lower and mid-income segments also recorded declines, while higher-value housing categories saw growth. Overall residential sales fell 4% to 84,827 units, with demand increasingly skewed towards premium housing. The share of homes priced below INR 1 crore reduced to 47%, reflecting affordability pressures and shifting buyer preferences amid rising property prices and global uncertainties.
Sales of affordable housing units priced below INR 50 lakh declined by 23% year-on-year to 16,273 units during the January–March quarter of 2026 across eight major cities, primarily due to lower supply in this segment, according to a report released by Knight Frank India in the past week. Advertisement
The report noted that all eight cities—Mumbai, Delhi-NCR, Pune, Bengaluru, Hyderabad, Chennai, Ahmedabad and Kolkata—recorded a decline in sales within the affordable housing category. Developers have attributed the reduced supply to rising input costs, particularly land prices, which have impacted the viability of launching projects in this price bracket.
The slowdown extended to the INR 50 lakh to INR 1 crore segment as well, where sales declined 12% year-on-year to 23,567 units during the quarter. In contrast, mid- and premium housing segments recorded growth. Sales in the INR 1–2 crore category increased 10% to 24,657 units, while the INR 2–5 crore segment saw a 17% rise to 16,075 units.
At the higher end, sales in the INR 5–10 crore category declined marginally by 3% to 3,338 units. However, the INR 10–20 crore segment recorded a 12% increase to 738 units, and the INR 20–50 crore category saw a sharp rise of 80% to 165 units. Sales of ultra-luxury homes priced above INR 50 crore declined significantly by 93% to 12 units during the same period.
Overall, housing sales across all price categories fell 4% year-on-year to 84,827 units during the quarter, reflecting softer demand conditions. The report indicated that elevated property prices and global uncertainties, including geopolitical developments in West Asia, have affected buyer sentiment.
Knight Frank highlighted that market activity remained concentrated in higher-value segments even as overall growth moderated. The share of homes priced below INR 1 crore declined to 47% of total sales, compared to 54% in the corresponding period last year, indicating a continued shift towards premium housing.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, indicated that the moderation in residential demand follows a sustained multi-year growth cycle. He stated that rising prices coupled with softening sales volumes point to increasing pressure on affordability and absorption levels. He also noted that geopolitical volatility has contributed to subdued buyer interest during the period.
On the supply side, total new launches across the eight cities declined 2% year-on-year to 94,855 units in the January–March quarter, further reflecting cautious developer activity in response to changing demand dynamics.
The data underscores a structural shift in the residential market, where demand continues to move towards higher-value housing, while affordability challenges persist in lower price segments due to rising costs and constrained supply.
Source - PTI
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