India’s Homebuyers Move Upmarket: Rs 1.5–3 Crore Segment Leads New Supply

India’s affordable housing aspirations are rapidly becoming a ‘Rs 1 crore-plus home’. Buyer preferences, increased affordability, and an overall upward movement towards bigger and better homes have meant that over the past few years, the industry has witnessed large swaths of demand moving swiftly upmarket from the Rs 50 lakh sweet spot towards homes costing Rs 1 crore and above.

However, after witnessing four years of breakneck upmarket movement, Magicbricks Research says that this trend could be showing signs of slowing down. It forecasts a shift towards demand-supply equilibrium with developers moderating supply towards changing demand rather than continuing their race upmarket.

A Magicbricks Research report that analysed new housing supply by ticket-size category between Q4 2021 and Q1 2026 says that homes under Rs 75 lakh now account for just 17 per cent of supply, down from 47 per cent a year ago. During the same period, the Rs 1.5–3 crore segment has almost doubled its share from 16 per cent to 31 per cent, and is now the largest ticket-size category in India’s housing supply.

Indeed, this datapoint also suggests that the radical upmarket shift in product mix we have witnessed has slowed down. Shares of supply across key ticket sizes have been stable over the last year. This would mean that the housing market is no longer skewing upmarket and is now finding a new normal. Premium housing continued to witness substantial growth from 2021 to 2025. However, the growth rate has started tapering off. Houses priced over Rs 5 crore now make up approximately 9 per cent of new supply, compared to 2.5 per cent four years back. But the share has plateaued over the last few quarters.

On the other hand, the Rs 75 lakh to Rs 1.5 crore mid-income buckets have remained impressively stable. Together, they have contributed close to 31 per cent of supply nationally during the cycle and remain the key stabiliser.

Regionally, too, interesting trends emerge from India’s top 7 housing markets. NCR looks set to stabilise after going through a phase of aggressive premiumisation; supply here is slowly starting to rebalance into Rs 1–3 crore price bands.

Meanwhile, MMR saw selective premiumisation in launches this year, while Bengaluru has consistently sustained a premium and luxury-focussed growth story, aided by end-user demand. Hyderabad remains one of the fastest-growing cities, but supply dynamics here continue to be much more volatile relative to other metros.

The report further emphasises the need for policy interventions to revive the supply of affordable homes. With increasing input costs, demand for affordable homes, i.e. sub-Rs 75 lakh homes, has been subdued, leading to a lower share of such homes in organised housing supply.

This period of stability in the housing market is indicative of a structurally healthier market with improved pricing power, evenly distributed supply across segments and developer launches which are better aligned with customer demand.