India’s Housing Supply Enters a Rebalancing Phase as Premiumisation Peaks: Magicbricks Research
New Delhi : India’s residential real estate market has entered a new phase of evolution, with the rapid premiumisation witnessed over the past four years now giving way to a period of supply rebalancing, according to the latest analysis by Magicbricks Research.
The study, which tracks new housing supply across key ticket-size segments between Q4 2021 and Q1 2026, reveals that the share of homes priced below ₹75 lakh has declined sharply from 47% to 17%, while the ₹1.5–3 crore segment has nearly doubled its share from 16% to 31%, emerging as the largest category in India’s housing supply mix.
Notably, the data suggests that the dramatic 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 highlights 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.
The analysis also reveals distinct regional trends across India’s largest housing markets. 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.
As India’s housing market matures, the current phase of stability reflects a structurally healthier ecosystem marked by greater pricing discipline, balanced supply distribution and stronger alignment between developer launches and buyer demand.
