Real Estate
India Housing Market Shifts Towards Premium and Luxury Homes
India's housing market is increasingly moving towards premium and luxury homes, with the share of homes priced below ₹1.5 crore falling from 85% in Q1 2022 to 47% in Q1 2026, according to CareEdge Ratings.
At the same time, higher-priced homes are gaining a larger share of new launches as developers respond to changing buyer demand and rising costs.
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Mumbai: India's housing market is moving increasingly towards premium and luxury homes, while the share of affordable homes in new launches is declining, according to CareEdge Ratings.
Homes priced below ₹1.5 crore accounted for 85% of new launches across the top seven cities in Q1 2022. Their share dropped to 57% in Q1 2025 and further to 47% in Q1 2026.
In contrast, homes priced between ₹1.5 crore and ₹4 crore increased their share from 14% in Q1 2022 to 44% in Q1 2026. Homes priced above ₹4 crore also increased from 1% to 9% during the same period.
Developers Focus on Premium Housing
According to CareEdge Ratings, developers are giving greater attention to premium housing as buyer preferences change and land, construction and compliance costs rise.
Demand from wealthy Indian buyers and NRIs (Non-Resident Indians) is also supporting the premium and luxury segments. Larger homes and projects with better amenities are attracting buyers looking for higher-end properties.
Developer Finances Strengthen
The financial position of major residential developers has also improved. Their debt-to-collections ratio declined from 1.80 times in FY20 to 0.68 times in FY26.
This indicates that developers have reduced their debt compared with the money collected from customers. However, smaller developers may continue to face greater financial pressure because they generally have fewer projects and less flexibility.
Housing Sales Vary Across Cities
Housing sales have not moved at the same pace across major Indian cities.
In Q1 2026, sales fell 11% in Pune and Delhi-NCR, while the Mumbai Metropolitan Region (MMR) recorded a 7% decline.
Southern markets performed better, with sales rising 9% in Chennai, 5% in Bengaluru and 1% in Hyderabad. Kolkata and Ahmedabad recorded growth of 5% and 2%, respectively.
Editorial Insight | Signature Media News
India's housing market is seeing a growing preference for premium homes, but rising costs are making affordable housing more difficult to deliver in major cities.
As developers focus more on higher-value projects, buyers looking for reasonably priced homes may face fewer choices.
Homes priced below ₹1.5 crore accounted for 85% of new launches across the top seven cities in Q1 2022. Their share dropped to 57% in Q1 2025 and further to 47% in Q1 2026.
In contrast, homes priced between ₹1.5 crore and ₹4 crore increased their share from 14% in Q1 2022 to 44% in Q1 2026. Homes priced above ₹4 crore also increased from 1% to 9% during the same period.
Developers Focus on Premium Housing
According to CareEdge Ratings, developers are giving greater attention to premium housing as buyer preferences change and land, construction and compliance costs rise.
Demand from wealthy Indian buyers and NRIs (Non-Resident Indians) is also supporting the premium and luxury segments. Larger homes and projects with better amenities are attracting buyers looking for higher-end properties.
Developer Finances Strengthen
The financial position of major residential developers has also improved. Their debt-to-collections ratio declined from 1.80 times in FY20 to 0.68 times in FY26.
This indicates that developers have reduced their debt compared with the money collected from customers. However, smaller developers may continue to face greater financial pressure because they generally have fewer projects and less flexibility.
Housing Sales Vary Across Cities
Housing sales have not moved at the same pace across major Indian cities.
In Q1 2026, sales fell 11% in Pune and Delhi-NCR, while the Mumbai Metropolitan Region (MMR) recorded a 7% decline.
Southern markets performed better, with sales rising 9% in Chennai, 5% in Bengaluru and 1% in Hyderabad. Kolkata and Ahmedabad recorded growth of 5% and 2%, respectively.
Editorial Insight | Signature Media News
India's housing market is seeing a growing preference for premium homes, but rising costs are making affordable housing more difficult to deliver in major cities.
As developers focus more on higher-value projects, buyers looking for reasonably priced homes may face fewer choices.
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