India's Dream Home Has Moved Up a Bracket: From ₹50 Lakh to ₹1 Crore-Plus

India’s residential real estate market has entered a new phase of evolution, marked by a significant shift in housing preferences and supply dynamics. According to the latest analysis by Magicbricks Research, the country’s housing market has witnessed rapid premiumisation over the past four years, with homes priced above ₹1 crore increasingly becoming the preferred choice among developers and buyers.

The study, which tracks new housing supply across key ticket-size segments from Q4 2021 to Q1 2026, reveals a sharp decline in the share of affordable housing. Homes priced below ₹75 lakh accounted for 47% of total supply in 2021, but this share has now fallen to just 17%. At the same time, the ₹1.5 crore to ₹3 crore segment has emerged as the largest category in India’s residential supply mix, increasing from 16% to 31%.

The report indicates that while the market witnessed a strong shift towards premium housing between 2021 and 2025, the pace of premiumisation has now stabilised. Supply shares across most price categories have remained largely unchanged over the past year, suggesting that the market is settling into a new equilibrium rather than continuing its upward movement.

Luxury housing has experienced remarkable growth during this period. Homes priced above ₹5 crore now represent approximately 9% of total new supply compared to just 2.5% four years ago. However, the share of luxury housing has remained relatively stable in recent quarters, indicating a plateau in expansion.

Meanwhile, the mid-income housing segment, comprising homes priced between ₹75 lakh and ₹1.5 crore, has remained resilient and consistent. Collectively contributing nearly 31% of total housing supply, this segment continues to serve as a stabilising force within the residential market.

Regional trends reveal varying market dynamics across India's major metropolitan areas. NCR is witnessing a gradual correction after rapid premium expansion, with supply increasingly shifting towards the ₹1 crore to ₹3 crore segment. Mumbai Metropolitan Region continues to see selective growth in luxury housing launches, while Bengaluru maintains a steady premium and luxury-driven trajectory supported by strong end-user demand. Hyderabad remains one of the fastest-growing residential markets, although its supply patterns continue to be more volatile compared to other metros.

According to Magicbricks Research, the next phase of growth in India's residential sector will depend less on changes in ticket-size distribution and more on sustained housing absorption. With premiumisation largely complete, future supply expansion will increasingly rely on maintaining healthy demand across core mid-premium segments.

The findings also highlight the urgent need for policy interventions to revive affordable housing supply. Rising land acquisition costs, increasing construction expenses, and changing development economics continue to constrain new launches in the sub-₹75 lakh category, reducing the availability of affordable homes within the organised housing sector.

As India’s housing market matures, the current phase of stability reflects a healthier and more balanced ecosystem characterised by improved pricing discipline, stronger alignment between supply and demand, and more sustainable growth across housing categories.
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