NEW DELHI: The Indian residential market shifted more towards higher-value homes in 2025, with properties priced above ₹1 crore making up 50% of total annual sales. This trend emerged even as demand for affordable housing decreased, according to a recent Knight Frank India report.
Total housing sales reached 348,207 units in 2025. Homes priced over ₹1 crore experienced a 14% year-on-year increase, while sales for units below ₹50 lakh fell by 17%. The mid-segment, priced between ₹50 lakh and ₹1 crore, also faced an 8% drop in annual sales.
As noted in the report, the slowdown primarily affected lower-priced categories, highlighting a significant shift in buyer preferences and developer strategies. This trend was particularly prominent in Delhi-NCR, where overall residential sales dropped by 9%, and affordable housing sales plummeted by 25%.
On the supply side, developers reduced new launches in the lower price brackets. In 2025, new listings in the sub-₹50 lakh category fell by 28%, while those in the ₹50 lakh–₹1 crore segment decreased by 9%. This reduction in new supply led to a 7% decline in unsold inventory for the sub-₹50 lakh segment.
Shishir Baijal, international partner and chairman of the company, stated that the residential market remains supported by a stable macroeconomic environment and recent repo rate cuts, though affordable housing is under significant pressure.
“The demand for affordable housing has dropped by 17% year-on-year, with supply contracting even more sharply at 28%. This divergence indicates a structural shift in the market, with capital and buyer preferences increasingly focusing on higher-value homes,” he said.
The report highlights that the strengthening presence of premium housing aligns with both buyer aspirations and developer strategies, as capital increasingly seeks higher-margin projects amidst a sustained demand for upper-priced properties.
