Real Estate News: Real estate consultant Knight Frank India has said that the sales of affordable homes took a hit in the January to March period of 2026 (Q1 2026) in the top 8 cities.

The impact was mainly driven by the lower supply of units, said the report. The top 8 cities under review are Mumbai, Delhi-NCR, Pune, Bengaluru, Hyderabad, Chennai, Ahmedabad and Kolkata.

Affordable homes cost less than Rs 50 lakh each.

According to Knight Frank, affordable homes fell 23 per cent YoY in the three-month period to 16,273 units.

Notably, the demand for luxury homes surged drastically after the pandemic.

Builders are likely attributing the decline in launches in the affordable housing category to the high cost of inputs, especially land.

As per the Knight Frank report, homes in the Rs 50 lakhs to Rs 1 crore category witnessed a decline of 12 per cent YoY in the January to March period of 2026 in the top 8 cities. The total sales of such units stood at 23,567.

On the flip side, the sales of homes in the range of Rs 1 to Rs 2 crore grew by 10 per cent YoY to 24,657 units in the top 8 cities. In the Rs 2-5 crore category, the sales surged by 17 per cent YoY to 16,075 units.

Sales in the Rs 5-10 crore category dropped by 3 per cent to 3,338 units, the report said.

On the other hand, housing sales in the Rs 10-20 crore category increased 12 per cent to 738 units, while sales in the Rs 20-50 crore category jumped 80 per cent to 165 units.

The sale of homes costing more than Rs 50 crore declined 93 per cent to 12 units in the three-month period.

Knight Frank data showed that the housing sales fell 4 per cent YoY to 84,827 units across all price categories in the January-March period.

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