Sales of affordable homes in India, defined as those costing less than ₹50 lakh (approximately $60,000 USD), fell 23% year-on-year during the first quarter of 2026, totaling 16,273 units across eight major cities, including Mumbai, Delhi-NCR, and Bengaluru. This decline is primarily due to reduced fresh supply and high input costs, particularly land. In contrast, the luxury housing segment has seen a surge, with sales in the ₹1-2 crore category rising 10% to 24,657 units, and those in the ₹2-5 crore segment increasing 17% to 16,075 units. Overall, housing sales across all price categories dropped 4% to 84,827 units, reflecting soft demand driven by high prices and uncertainties stemming from geopolitical tensions. Knight Frank India’s Chairman, Shishir Baijal, noted that the moderation in residential demand follows a prolonged upcycle, indicating pressure on affordability and market absorption. The total new supply of homes also fell 2% annually to 94,855 units during this period.