The Shift to Premium: India's New Dream Home Costs ₹1.5-3 Crore

The share of newly launched homes priced below ₹75 lakh has fallen sharply from 47% in late 2021 to just 17% in early 2026. In contrast, homes priced between ₹1.5 crore and ₹3 crore have nearly doubled their share of supply, rising from 16% to 31% and becoming the largest segment in India's residential market, according to an analysis by Magicbricks Research.

For buyers, the shift reflects a stark new reality. The days when affordable housing dominated new project launches appear to be over. Instead, developers are increasingly focusing on mid-premium and premium homes, where demand has remained strong and profit margins are healthier.

The trend has been driven by a combination of factors. Rising land prices, higher construction costs, increasing compliance expenses, and changing buyer preferences have all pushed developers towards higher-ticket projects. At the same time, a growing base of affluent buyers and rising household incomes in urban India have supported demand for larger and more premium homes.

Notably, the data suggests that the shift towards premium housing has now stabilised. Across major ticket-size bands, supply shares have remained largely unchanged over the past year, indicating that the market is no longer moving further upmarket but is instead settling into a new equilibrium.

The report states that while luxury housing expanded significantly between 2021 and 2025, growth in the segment has begun to plateau. Homes priced above ₹5 crore now account for around 9% of new supply, compared to just 2.5% four years ago, but their share has remained broadly stable over recent quarters.

Meanwhile, the mid-income segments between ₹75 lakh and ₹1.5 crore have displayed remarkable consistency, collectively contributing around 31% of national supply throughout the cycle. This segment continues to serve as a critical stabilising force in the market.

NCR appears to be correcting after a period of rapid premium expansion, with supply gradually shifting towards the ₹1–3 crore segments. MMR continues to witness selective growth in luxury launches, while Bengaluru has maintained a steady premium and luxury-driven trajectory supported by strong end-user demand. Hyderabad remains one of the fastest-growing markets, although its supply trends continue to exhibit greater volatility compared to other metros.

According to Magicbricks Research, the next phase of growth for the residential sector will be driven less by shifts in ticket-size mix and more by sustained absorption levels. With the market having largely completed its premiumisation cycle, future supply growth will increasingly depend on maintaining healthy demand across core mid-premium categories.

The findings also reinforce the need for targeted interventions to revive affordable housing supply. Rising land costs, construction expenses, and development economics continue to constrain new launches in the sub-₹75 lakh category, limiting the segment's share in organised residential supply.