Homes Priced Rs 1 Crore And Above Constitute 50 Percent Of Total Sales In India: Knight Frank Report

India’s residential real estate market is undergoing a significant transformation, with premium housing driving growth. According to Knight Frank India’s report released in February 2026, homes priced Rs 1 crore and above now make up half of all residential sales in the country. This marks a notable rise of 14 percent year-on-year in the premium segment.  

The report highlighted that overall residential sales stood at 3,48,207 units in 2025, underscoring resilience in the housing market despite global economic uncertainties. The affordable housing segment, however, witnessed a sharp 17 percent decline, with demand slowing for homes priced below Rs 50 lakh. New launches also fell by 28 percent, indicating developers’ strategic shift toward higher-value projects.  

Stable macroeconomic conditions, recent repo rate cuts, and rising aspirations among urban buyers have contributed to this premiumisation trend. Developers are increasingly focusing on mid-to-luxury housing projects, aligning with consumer demand for larger homes, better amenities, and prime locations.  

Key highlights from the announcement include  

• Premium homes (Rs 1 crore+) accounted for 50 percent of total sales in 2025  
• Overall residential sales reached 3,48,207 units last year  
• Luxury housing sales rose 14 percent year-on-year  
• Affordable housing under Rs 50 lakh declined 17 percent year-on-year  
• New launches dropped 28 percent, reflecting developer focus on premium projects  
• Stable macroeconomic backdrop and repo rate cuts supported resilience  

Analysts note that the trend reflects India’s evolving housing market, where premium housing is becoming the dominant driver of growth. With developers shifting strategies, the sector is expected to see more mid-to-luxury projects in the coming years.  

Sources: Knight Frank India, IANS, Great Andhra