New Delhi: India’s residential real estate market has entered a new phase of evolution, with the rapid premiumisation seen over the last four years giving way to a period of supply rebalancing, according to an analysis released by Magicbricks Research.
The study, which tracked new housing supply across major ticket-size segments between Q4 2021 and Q1 2026, found that the share of homes priced below ₹75 lakh declined significantly from 47% to 17% during the period. At the same time, homes priced between ₹1.5 crore and ₹3 crore nearly doubled their share from 16% to 31%, emerging as the largest category in India’s residential supply mix.
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According to the analysis, the shift towards premium housing appears to have stabilised. Supply shares across major ticket-size categories have remained largely unchanged over the past year, indicating that the market is no longer moving substantially further up the pricing spectrum and is instead settling into a more balanced structure.
The report noted that luxury housing witnessed considerable expansion between 2021 and 2025. Homes priced above ₹5 crore now account for around 9% of new supply, compared with 2.5% four years ago. However, the segment’s share has remained broadly stable in recent quarters.
Meanwhile, housing priced between ₹75 lakh and ₹1.5 crore has maintained consistency throughout the cycle. Collectively, these mid-income categories contributed around 31% of national housing supply and continued to act as a stabilising segment within the market.
The study also highlighted regional variations across India’s major residential markets.
According to the report, NCR is witnessing a correction following a period of rapid premium expansion, with supply gradually shifting towards the ₹1 crore to ₹3 crore categories. Mumbai Metropolitan Region (MMR) continues to record selective growth in luxury housing launches, while Bengaluru has maintained a steady premium and luxury-led trajectory supported by end-user demand.
Hyderabad remains among the fastest-growing housing markets, although supply patterns there continue to display higher volatility compared to other metropolitan regions.
Magicbricks Research stated that the next phase of growth in the residential sector is likely to be driven less by changes in ticket-size distribution and more by sustained housing absorption levels. With premiumisation largely completed, future supply growth may increasingly depend on maintaining healthy demand across core mid-premium housing categories.
The findings also pointed to the need for targeted interventions aimed at reviving affordable housing supply. Rising land costs, increasing construction expenses and project development economics continue to constrain new launches in the sub-₹75 lakh category, limiting its share within organised residential supply.
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According to the report, the current phase of stability reflects a more mature housing market characterised by greater pricing discipline, balanced supply distribution and stronger alignment between developer launches and homebuyer demand.
