India's housing market is selling homes at near-record levels, but the dream of buying an affordable home is quietly moving out of reach for many buyers. As prices keep climbing and developers focus on premium projects, affordable homes are shrinking from the market even as overall sales remain remarkably strong.
For years, the biggest question surrounding India's property market was whether the post-pandemic boom could last. Knight Frank's latest report suggests it can. But beneath those reassuring numbers, another question is quietly becoming even more important: Who is still finding homes within their budget?
"India's housing market continues to reflect the stability of its strong fundamentals, with H1 2026 delivering one of the strongest half-year sales performances of the past decade. While growth has reduced following a steep recovery from pandemic lows, the market's underlying fundamentals remain firmly intact," Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said.
Who can still afford to be part of India's realty boom?
India's housing boom is increasingly being driven by buyers who can spend more. Overall sales remain close to record highs, but a growing share of those purchases now comes from the premium end of the market as affordable homes become harder to find.
Knight Frank India's Gulam Zia, International Partner and Senior Executive Director, Research, Advisory, Infrastructure and Valuation, believes the growing share of premium housing reflects not only rising affluence among wealthier buyers but also the gradual disappearance of affordable homes as years of price increases have pushed them beyond the reach of many households.
He said inventory is rising, sales are no longer growing as rapidly and future price growth may increasingly depend on buyer incentives rather than underlying demand. These are not signs of stress, he said, but they are developments worth watching as India's housing cycle matures.
"Homebuyers today are more discerning, prioritising product quality, infrastructure, developer credibility and long-term value over short-term price considerations. This is reflected in the growing share of premium housing, which now contributes more than half of all residential sales. At the same time, disciplined project launches and healthy inventory levels demonstrate that developers are responding prudently to evolving market demand, creating the foundation for sustainable long-term growth," Gulam Zia said.
India's housing market: What numbers show
According to Knight Frank India's India Real Estate: Residential and Office (January-June 2026) report, the country's residential market delivered one of its strongest first halves in more than a decade. Developers sold 171,471 homes across the eight major cities during the first six months of 2026, slightly higher than the 170,201 units sold in the same period last year. New launches also continued to rise, with developers introducing 187,350 homes into the market, a 4% increase from a year earlier.
