Mumbai: India’s residential real estate market is facing a clear demand–supply imbalance, particularly in the affordable and value housing segments, as highlighted in the Magicbricks PropIndex OND 2025 report.
According to the report, homes priced below ₹75 lakh accounted for nearly 43% of total buyer demand, making this segment the most sought-after category during the quarter. However, despite strong interest from buyers, only 17% of active residential listings fall within this price bracket, underscoring a significant gap between demand and available supply.
On the supply front, new residential launches continue to be concentrated in higher price segments, mainly between ₹1.5 crore and ₹3 crore. This skew is driven by increasing land acquisition costs, rising construction expenses, compliance with regulatory norms, and developers’ preference for premium housing where margins remain relatively stable. As a result, affordable housing supply has failed to keep pace with market demand.
The report further notes that demand for sub-₹75 lakh homes is largely end-user driven. Key factors such as steady household formation, improving connectivity in peripheral and emerging micro-markets, and a growing preference for homeownership among first-time buyers continue to support this segment. Even during seasonal slowdowns, value-led housing has demonstrated greater resilience across major Indian cities.
Magicbricks analysts suggest that bridging the demand–supply gap in affordable housing will be critical for sustaining transaction growth in 2026. Strategic measures such as cost-efficient project planning, faster approvals, improved execution timelines, and targeted policy support could help align future supply with buyer expectations.
Overall, the findings indicate a structural shift in India’s housing market toward stable, end-user-led growth, where affordability, value pricing, and practical living solutions will play a decisive role in shaping future residential development strategies.
