India’s residential real estate market is undergoing a structural shift, with developers increasingly focusing on premium and luxury housing while the share of affordable homes in new launches continues to decline, according to CareEdge Ratings.
The shift comes even as overall housing sales across India’s top cities moderated in the first quarter of 2026, with affordability pressures, elevated property prices and cautious buyer sentiment weighing on demand in several markets. However, premium and luxury housing continued to show resilience, supported by affluent buyers who are relatively less sensitive to inflation and higher property prices.