Mumbai: India’s residential real estate market has entered a new phase of evolution, with premium housing emerging as the dominant segment and affordable housing witnessing a sharp decline in supply share, according to an analysis by Magicbricks Research.
The study, which tracked new housing supply across major ticket-size categories between Q4 2021 and Q1 2026, found that the share of homes priced below ₹75 lakh declined from 47% to 17% during the period.
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At the same time, homes priced between ₹1.5 crore and ₹3 crore increased their share from 16% to 31%, making the segment the largest contributor to India’s residential housing supply.
According to the analysis, the rapid premiumisation witnessed over the past four years has now begun to stabilise. Supply distribution across major ticket-size segments has remained largely unchanged over the past year, suggesting that the market has entered a period of equilibrium rather than continuing its move towards higher-priced housing.
The report noted that luxury housing recorded substantial expansion between 2021 and 2025. Homes priced above ₹5 crore now account for approximately 9% of new housing supply, compared with 2.5% four years earlier. However, the segment’s share has remained broadly stable in recent quarters.
Meanwhile, housing priced between ₹75 lakh and ₹1.5 crore has maintained a relatively consistent contribution, accounting for around 31% of national housing supply throughout the period under review.
The analysis also highlighted varying regional trends across key housing markets.
According to the report, the National Capital Region (NCR) is witnessing a gradual shift towards the ₹1 crore to ₹3 crore segments following a period of rapid premium expansion. The Mumbai Metropolitan Region (MMR) continues to record selective growth in luxury housing launches, while Bengaluru has maintained a steady premium and luxury-focused trajectory supported by end-user demand.
Hyderabad remains among the fastest-growing residential markets, although housing supply trends in the city continue to display greater volatility than other metropolitan markets.
Magicbricks Research stated that future growth in the residential sector is likely to be driven by housing absorption levels rather than further changes in ticket-size distribution.
The analysis also highlighted ongoing challenges for affordable housing supply, noting that rising land costs, construction expenses and development economics continue to constrain launches in the sub-₹75 lakh category.
According to the report, the current phase reflects a more balanced residential market characterised by pricing discipline, stable supply distribution and stronger alignment between housing launches and buyer demand.
