finance During the fourth quarter (January-March 2026) of the year 2025-26, there has been a huge decline in the sales of affordable houses priced below Rs 50 lakh in the top 8 cities of the country. There has been a huge decline of 23 percent in the sales of affordable houses in the fourth quarter of the financial year 2025-26 compared to the fourth quarter of the financial year 2024-25. A total of 16,273 affordable houses were sold between January and March this year. This information has come to light in the report of real estate consultant Knight Frank. According to the report, the main reason for the decline in sales of affordable homes was the decline in new deliveries.
Demand for luxury homes increased after Covid
Since Covid, there has been a surge in demand for expensive and luxury homes worth crores of rupees. Due to increasing demand for luxury homes, builders are also not showing much interest in affordable housing projects. The reason for this is being said to be the increase in construction costs, especially the high prices of land. According to the latest report of Knight Frank India, in the January-March quarter this year, the affordable housing segment recorded the sharpest decline of 23 percent and sales have declined in all 8 major cities. According to the data, the category of Rs 50 lakh to Rs 1 crore also recorded a decline of 12 percent this year compared to the initial quarter of 2025 and it came down to 23,567.
Sales of houses worth Rs 20-50 crore increased by 80 percent
Knight Frank India’s report is based on demand from Mumbai, Delhi-NCR, Pune, Bengaluru, Hyderabad, Chennai, Ahmedabad and Kolkata. In contrast, sales in the Rs 1-2 crore category rose 10 per cent to 24,657, according to the report. There were 16,075 houses sold in the Rs 2 to 5 crore category, a rise of 17 per cent. At the same time, sales in the Rs 5 to 10 crore category declined by 3 percent to 3,338. Whereas, sales of homes in the Rs 10-20 crore category increased by 12 per cent to 738 and homes in the Rs 20-50 crore category increased by 80 per cent to 165.
