- Sales of affordable homes below Rs 50 lakh fell 23% in Jan-Mar across eight cities
- All eight cities saw declines in affordable housing, the steepest drop in Q1 2026
- Homes priced Rs 50 lakh to Rs 1 crore sales dropped 12% to 23,567 units in the quarter
Sales of affordable homes priced below Rs 50 lakh declined 23% year-on-year in the January-March quarter to 16,273 units across the top eight cities, primarily due to a sharp drop in fresh supply in this price segment, real estate consultancy Knight Frank said in its latest report.
All eight cities — Mumbai, the National Capital Region, Pune, Bengaluru, Hyderabad, Chennai, Ahmedabad and Kolkata — recorded a fall in sales in the affordable category, making it the steepest declining segment during the first quarter of the 2026 calendar year. Builders have attributed the reduced launches in affordable housing to rising input costs, particularly land prices, even as post-pandemic demand for luxury homes has surged.
The Rs 50-lakh to Rs 1-crore segment also witnessed a 12% year-on-year drop to 23,567 units during the same period. The share of homes priced below Rs 1 crore has fallen to 47% of total sales, compared to 54% in the January-March quarter of 2025.
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In contrast, mid and premium segments showed resilience. Sales in the Rs 1-2 crore bracket rose 10% to 24,657 units, while the Rs 2-5 crore category saw a 17% jump to 16,075 units. The Rs 10-20-crore segment grew 12% to 738 units, and the Rs 20-50 crore category surged 80% to 165 units. However, homes priced above Rs 50 crore saw a steep 93% decline to just 12 units.
Overall housing sales across all price categories fell 4 per cent annually to 84,827 units during January-March, weighed down by elevated prices, softer demand and uncertainties stemming from the West Asia conflict. Total new supply also dipped 2 per cent to 94,855 units.
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Shishir Baijal, chairman and managing director of Knight Frank India, said the slowdown follows a sustained multi-year upcycle. "The continued rise in prices alongside softening volumes indicates growing pressure on affordability and absorption," he said, adding that volatile geopolitical conditions have further dampened residential demand.
(With inputs from PTI)
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