The loudest housing headlines today belong to premium and luxury projects. That does not automatically tell us where India’s deepest housing demand lies.
After more than 25 years in real estate, I have learnt to separate three things: aspiration, genuine need and the ability to complete a purchase. All matter, but they are not the same.
Luxury demand is visible—and concentrated
JLL reported that 70,631 homes were sold across India’s seven major cities in the first quarter of 2026, 8% more than a year earlier. Sales above ₹1 crore grew 30%, while sales below ₹1 crore fell 24%. This is strong evidence of premiumisation in the cities covered, not proof that every expensive project will succeed.
Affluent and upgrading buyers increasingly value larger layouts, security, amenities and professional maintenance. But a high price alone does not create luxury. The location, design, privacy, service and long-term upkeep must justify it.
Affordable need remains much broader
The need for attainable housing is enormous, yet need becomes a transaction only when the buyer can manage the down payment and monthly instalment. CBRE’s March 2026 outlook said affordability in six major cities may stabilise from 2026 to 2028 as income growth is expected to outpace price growth. It also found that the sub-₹45 lakh segment remains constrained by input costs and reduced targeted incentives.
Affordable housing cannot mean a small flat placed far from employment. If a family spends excessive time and money commuting, the home is not truly affordable. Transport, schools, healthcare, dependable utilities and maintenance all belong in the calculation.
Read demand beyond the brochure
Developers should look beyond enquiries and launch-day bookings. Completed sales, mortgage eligibility, cancellations, occupancy and resale or rental activity reveal more. As I noted in my article on property prices in Dehradun, an asking price is not the same as a realised market price.
My personal view
India needs both segments. Luxury housing can perform strongly in select locations with genuine purchasing power. Affordable and mid-income housing serve a wider base, but require disciplined land costs, efficient approvals and connectivity.
The most durable demand, in my view, will be for homes that match the buyer’s income and daily life. Real estate succeeds when it solves a real housing problem—not when it merely changes the label on the brochure.
—Tushar Kumar
Sources and context
Market figures were checked against JLL’s Residential Dynamics Report Q1 2026 and CBRE’s India Residential Market Outlook update of 26 March 2026. Segment definitions vary by report and city; the conclusions are my personal assessment, not a return forecast.