India’s housing market has undergone a dramatic shift — reasonably priced houses have receded from gross sales charts, whereas luxurious items have surged to document highs. Costs have climbed steeply throughout cities, fuelled by rising land prices, premium demand, and rising investor curiosity. Builders, chasing larger margins, are sidelining reasonably priced initiatives, leaving provide more and more skewed in the direction of the higher finish.
An evaluation of the actual property sector in India’s high seven cities – Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata –utilizing consultancy ANAROCK’s information reveals the important thing developments shaping this transformation.
Chart 1
The share of reasonably priced houses priced beneath Rs 40 lakh in housing gross sales throughout India’s high seven residential markets has dropped from 37 per cent in 2021 to 18 per cent within the first half of 2025. Whereas builders have shifted launches in the direction of higher-end segments for higher margins, weak demand within the reasonably priced phase has additional skewed the gross sales combine.
Between 2021 and 2024, reasonably priced unit gross sales rose simply 6 per cent — from 87,510 to 93,000 items — at the same time as general gross sales almost doubled.
Chart 2
In stark distinction to reasonably priced housing, gross sales of luxurious items priced above Rs 1.5 crore have surged 450 per cent — from about 21,000 in 2021 to almost 1.2 lakh in 2025. Their share of general gross sales has jumped from 9 per cent to 29 per cent.
Whereas the enlargement of India’s rich class has been a key driver, the shift additionally displays post-pandemic preferences. Lockdowns and work-from-home insurance policies heightened demand for bigger houses with extra facilities — naturally pushing patrons in the direction of higher-priced items.
Chart 3
Common costs per sq ft have climbed sharply over the previous two years. In Delhi-NCR, they jumped 49 per cent to Rs 8,650 in April–June 2025 from Rs 5,800 in October–December 2023. Within the Mumbai Metropolitan Area (MMR) — which incorporates Thane and Navi Mumbai — costs rose 25 per cent to Rs 16,600, the very best within the nation. Bengaluru and Hyderabad noticed will increase of round 32 per cent every.
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Rising city land prices have pushed costs up, significantly as many patrons search houses in and round metropolis centres. Some specialists additionally imagine that sure pockets of the market might have seen excessive speculative exercise.
Chart 4
In April–June 2025, unsold residential stock slipped 3 per cent year-on-year to five.6 lakh items, with MMR (1.8 lakh), Hyderabad (98,000), and Delhi-NCR (89,000) accounting for the majority. Stock has been steadily declining since late 2021, when it stood at about 6.5 lakh items.
Reasonably priced housing nonetheless makes up a large chunk of inventory in Delhi-NCR (26 per cent) and Mumbai (30 per cent), however stays scarce in Bengaluru (5 per cent) and Hyderabad (2 per cent). In contrast, luxurious dominates in Bengaluru (39 per cent), Delhi-NCR (37 per cent), and Hyderabad (35 per cent).
Hyderabad’s stock overhang — the time wanted to clear present inventory with no new provide — is the very best at 26 months, signalling oversupply available in the market. Delhi-NCR stands at 19 months, MMR at 16, and Bengaluru at 12.
Chart 5
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Whereas some reasonably priced housing stock stays in Delhi-NCR, it’s set to shrink additional, with no new reasonably priced launches within the newest quarter. As a substitute, 82 per cent of launches have been luxurious items. Reasonably priced launches have been additionally absent in Bengaluru, Hyderabad, and Chennai. Mumbai bucked the pattern, with 33 per cent of recent provide within the reasonably priced phase, adopted by Kolkata (23 per cent) and Pune (15 per cent).
Builders more and more view reasonably priced housing initiatives as unviable at this cut-off date. Earlier this month, Niranjan Hiranandani, chairman of the Hiranandani Group, informed The Indian Categorical: “How do you match rising land costs and giving reasonably priced housing? It isn’t doable in the present day with inflation in the price of development, the tax charges that are there, stamp obligation charge, GST charge, native authority charges, and so forth. You can not make reasonably priced housing near the town centre the place employment alternatives exist.”