The Indian residential market spent the better part of two decades defined by volume at the affordable end. The story was units — lakhs of units sold annually in the sub-₹50 lakh range, driven by first-time buyers, government subsidies, and the aspiration of ownership in India’s rapidly urbanising cities. Affordable housing was the dominant narrative, the policy priority, and the majority of the market by transaction count.
That majority has now shifted.
For the first time, homes priced above ₹1 crore now account for 52% of India’s total residential sales across the top cities, according to Knight Frank India’s reporting on the residential market. The sub-₹1 crore segment — the segment that was the market — has been overtaken by volume. And in Delhi-NCR, the shift is even more extreme: 71% of residential transactions in Q1 2026 were above ₹1 crore.
This is not a temporary aberration. It is a structural repositioning of where India’s residential demand is concentrating — and every broker advising residential buyers or sellers needs to understand what is driving it and what it means.
The Numbers That Define the Shift
Across India’s top cities in 2026, homes priced above ₹1 crore now form 52% of total residential transactions — the first time this segment has crossed the 50% threshold by volume, according to Knight Frank India and the India Housing Report 2026. The average ticket size for residential transactions has risen to approximately ₹1.47 crore, according to the India Housing Report 2026.
The premium segment — homes priced above ₹1 crore — grew 30% year-on-year. The ₹1.5 crore to ₹3 crore band, which represents the upper-middle segment, grew 67% year-on-year. The sub-₹1 crore segment contracted 24% year-on-year.
In Q1 2026, India’s overall residential market sold 70,631 units — up 8% year-on-year, according to JLL India’s Q1 2026 Residential Dynamics Report. But the growth was entirely in the premium and above segments. The affordable market is not just shrinking as a proportion — it is shrinking in absolute terms.
| Price Segment | YoY Growth (2026) | Market Share Trend |
|---|---|---|
| Below ₹1 crore (Affordable) | −24% | Falling — below 50% of sales for first time |
| ₹1 crore–₹1.5 crore (Mid-premium) | +30% | Rising strongly |
| ₹1.5 crore–₹3 crore (Upper-mid) | +67% | Fastest growing segment |
| Above ₹5 crore (Luxury) | Significant growth | ₹5cr+ = 50% of market value in NCR (CY25) |
Sources: Knight Frank India; India Housing Report 2026; JLL India Q1 2026 Residential Dynamics Report; Business Standard
Delhi-NCR — The Most Extreme Market in India
Delhi-NCR’s residential market has moved furthest, fastest. In Q1 2026, 71% of all residential transactions in Delhi-NCR were priced above ₹1 crore — the highest share of any major Indian market. In Gurugram specifically, homes above ₹5 crore contributed approximately 64% of the residential market value in CY25 — a figure that reflects the dominance of high-end developer launches in Sector 58, Dwarka Expressway, and Golf Course Extension Road.
The premium shift in Delhi-NCR has specific drivers. The Dwarka Expressway zone — opened as a functional residential corridor in 2024-2025 — absorbed significant developer supply in the ₹2-6 crore segment. Gurugram’s Southern Peripheral Road and Sohna Road corridors have become the default launch locations for branded developer projects in the ₹3-10 crore range. And the luxury segment — projects above ₹5 crore by DLF, Godrej, M3M, and others in Golf Course Road and New Gurugram — absorbed HNI and NRI demand that used to flow into the secondary market.
What Is Driving the Premium Shift?
Three converging factors have driven the shift from affordable to premium as the market majority.
First, affluent domestic demand. India’s urban professional class — technology professionals, senior corporate executives, startup founders, business owners — has seen significant wealth creation over the 2020-2026 period. This cohort is not buying its first home. It is upgrading — from a 2BHK to a 3BHK, from a mid-market developer to a branded developer, from a peripheral location to a prime one. Upgrade demand from within the existing homeowner base is the most powerful driver of the ₹1.5-3 crore segment.
Second, NRI participation. Indian diaspora buyers — particularly from the US, UAE, UK, and Canada — have been significant participants in premium and luxury residential in 2024-2026. A favourable USD-INR rate, India’s economic trajectory, and emotional pull toward a “home base” in India have combined to sustain NRI demand in the ₹2 crore+ segment even as global economic uncertainty has constrained some other forms of investment.
Third, developer strategy. The largest listed developers — DLF, Godrej Properties, Prestige, Macrotech (Lodha), Sobha — have deliberately shifted their project mix toward the premium and luxury segment, where margins are higher and regulatory risk is lower. Developer launches in the sub-₹50 lakh range have collapsed as developers exit a segment where land costs, material costs, and labour costs leave margins too thin to justify the execution risk.
What Is Happening to Affordable Housing?
The 24% year-on-year contraction in the sub-₹1 crore segment is a serious data point. Affordable housing demand has not disappeared — the aspiration of homeownership among first-time buyers in the ₹30-75 lakh segment is real and large. What has happened is a supply withdrawal: developers have shifted to premium, land costs in Tier-I cities have made affordable projects unviable, and the government’s affordable housing subsidy scheme (PMAY-Urban 2.0) has not yet fully materialised into delivered supply at the scale needed.
The affordable demand is being absorbed by Tier-II and Tier-III cities — Lucknow, Indore, Jaipur, Coimbatore, Nagpur — where land costs remain lower and ₹30-60 lakh project viability exists. For Tier-I market brokers, this matters: the affordable first-time buyer they used to serve in Noida Extension or Thane may now be making decisions in smaller cities where their budget goes further.
Sirf Broker POV: The Broker Who Stays in One Segment Is Now Exposed
The structural shift from affordable to premium is the most consequential change in the Indian residential market in a decade — and it is happening faster than most brokers have adjusted to.
The broker who built their practice in the sub-₹50 lakh segment — the ready-to-move 2BHK in Noida Extension, the affordable mid-rise in Thane — is now working in a segment that is shrinking in supply, shrinking in launches, and increasingly being served by developer direct sales teams rather than channel partners. The commission pool in affordable has not just compressed. In many markets, it has migrated with the buyers who have graduated out of the segment.
The broker who moves with the premium shift does not need to abandon what they know. The premium buyer — the family upgrading from ₹80 lakh to ₹2 crore, the NRI looking for ₹3 crore in Gurugram — needs more advisory sophistication, not less. They need a broker who understands the difference between a RERA-registered developer with a clean delivery track record and one who has repeatedly delayed projects. They need someone who can explain circle rate implications, stamp duty calculations, and the financial implications of booking under-construction versus ready-to-move. The technical depth required is higher in the premium segment, not lower. That is the opportunity for brokers willing to build it.
Conclusion
The crossing of the 52% threshold by premium housing is not a headline that will reverse. The forces driving it — affluent domestic demand, NRI participation, developer strategy — are not cyclical. For brokers advising buyers at every price point, the circle rate and stamp duty implications of premium purchases are covered in our circle rate guide. For understanding how to protect your commission on higher-value deals, the commission clarity guide is essential. For affordable housing subsidy schemes that remain relevant for first-time buyers, our PMAY-Urban 2.0 guide explains what brokers can legitimately promise.
Frequently Asked Questions
Q: What percentage of India’s residential sales are above ₹1 crore in 2026?
A: 52% of India’s total residential sales across top cities are now in the above-₹1 crore segment — the first time in the market’s history that premium has overtaken affordable by transaction volume. Source: Knight Frank India; India Housing Report 2026.
Q: Why is the premium housing segment growing in India?
A: Three factors: affluent domestic upgrade demand (technology professionals, business owners upgrading from 2BHK to 3BHK or ₹80L to ₹2cr+), NRI participation (USD-INR rates, India’s economic growth), and developer strategy shift (listed developers moving to premium for better margins and lower regulatory risk).
Q: What is happening to affordable housing sales in India?
A: The sub-₹1 crore segment contracted 24% year-on-year. Developer supply has withdrawn as land and construction costs make sub-₹1 crore projects in Tier-I cities unviable. Affordable demand is migrating to Tier-II cities (Lucknow, Indore, Jaipur, Coimbatore) where land costs make ₹30-60 lakh project delivery viable.
Q: What is the premium housing situation in Delhi-NCR specifically?
A: Delhi-NCR is India’s most premium-shifted market. In Q1 2026, 71% of all residential transactions were above ₹1 crore. In Gurugram, homes above ₹5 crore contributed ~64% of residential market value in CY25. The Dwarka Expressway, Golf Course Extension, and Southern Peripheral Road corridors dominate premium supply.
Q: Which price segment is growing fastest in Indian residential in 2026?
A: The ₹1.5 crore to ₹3 crore segment grew 67% year-on-year — the fastest of any price band. This reflects the upgrade cohort: buyers moving from ₹60-80 lakh mid-market homes to the upper-mid premium segment, driven by income growth and aspirational lifestyle preferences.
Q: What should a broker do to adapt to the premium housing shift?
A: Build advisory depth in the premium segment: understand RERA delivery records of premium developers, learn circle rate and stamp duty implications at higher price points, develop knowledge of NRI purchase processes (FEMA compliance, SPA for registration), and understand what premium buyers actually value (delivery certainty, developer brand, project quality) beyond just location and price.
Q: Are NRIs driving luxury housing demand in India?
A: Yes — NRI participation is a significant driver in the ₹2 crore+ segment, particularly in Delhi-NCR, Mumbai, Bengaluru, and Hyderabad. A favourable USD-INR exchange rate, India’s economic growth trajectory, and emotional ties to a “home base” in India have sustained NRI demand through 2024-2026 even amid global economic uncertainty.