If you have been tracking India’s housing market over the last year or so, one thing stands out: the market is no longer moving in a single direction. It is splitting. 2025 was not really about everyone buying homes. It was more about who was buying, what they were buying and why. That difference matters far more than overall sales numbers.
Recent numbers make this pretty obvious. Homes priced under Rs. 1 crore have seen sales slow down. Meanwhile, properties in the Rs. 1.5 crore to Rs. 3 crore bracket have held their ground and in some pockets, they have actually done better than expected. This is not random. It shows that buyers are rethinking what they really want from a home.
Instead of focusing only on ownership, buyers are increasingly prioritising space, comfort and long term lifestyle. Owning a home is no longer enough. People want a better home.
How rising incomes are reshaping housing choices
If you try to understand why this shift is happening, income plays a big role, especially in markets like Delhi NCR and South Delhi.
Over the last several years, many professionals, business owners and entrepreneurs have simply started earning more. And when that happens, the way people think about housing changes too. A home stops being just something you buy because you need one.
Earlier, buyers were ready to adjust. Smaller rooms, awkward layouts or limited light were accepted as long as the location worked. That thinking is gradually disappearing. Today, people are far more willing to spend extra if it gives them better space, smarter layouts, proper balconies and a home that actually feels comfortable to live in every day.
Things that were once considered luxuries, like good ventilation, smart home features, landscaped common areas and reliable security, are now seen as basic requirements. The rise of work from home and hybrid work has also played a role. People now spend more time indoors, which makes space planning, natural light and dedicated work areas far more important than before.
NRI buyers continue to support the premium segment
Another strong factor is demand from Non Resident Indians. NRIs have remained active buyers in Indian real estate, particularly in premium projects located in established neighbourhoods. Favourable exchange rates, long term investment confidence and emotional attachment to home cities all play a part.
Cities like Delhi, Gurgaon and South Delhi still feel like safe bets for many NRI buyers. The infrastructure is already in place, connectivity is reliable and daily life is easier compared to newer or untested locations. That comfort factor matters a lot when you are buying from overseas.
Most NRIs also prefer homes that are either ready to move into or close to completion. Most of them are not keen on waiting for years for a project to finish. They would rather go with a developer who has delivered before and keeps things legally straightforward. Because of this, their demand naturally leans towards higher value homes, which helps keep the premium segment steady even when the broader market slows down.
Why lifestyle has become just as important as space
For today’s buyer, a home is not just about walls and rooms. It is about how life feels inside that space.
Well maintained gated communities, green surroundings, privacy, parking convenience and access to schools, hospitals and daily needs all influence buying decisions. Buyers want homes that support wellness and peace of mind, not just investment value.
In South Delhi, this trend is especially visible. Many buyers are drawn to builder floors and redeveloped properties that offer modern layouts while still being part of familiar neighbourhoods. The charm of established areas combined with updated design is a big draw.
The definition of a ‘good home’ has actually evolved.
Affordable housing is facing real supply issues
The slowdown in affordable housing is not always because buyers do not want it. In many cases, it is simply hard to build.
Land prices, construction costs and regulatory requirements make it difficult for developers to deliver homes below Rs. 1 crore in central urban areas. Without strong policy support, many developers find premium housing more practical to execute.
As a result, buyers who might have earlier chosen affordable homes are either moving to the outskirts or stretching their budgets to buy better located properties. This further strengthens demand in the premium segment.
Micro markets are behaving very differently
Within Delhi NCR, demand varies sharply by location.
South Delhi continues to attract premium buyers because of its central location and limited new supply. Gurgaon remains popular for high end apartments and gated developments near business hubs. Noida and Greater Noida present a mixed picture with premium demand growing in well connected sectors while mid segment demand stays selective.
What this shows is simple. Buyers are no longer deciding purely on price. They are looking at long term value, convenience and liveability.
What this means going ahead for India’s housing market
For buyers and investors looking at 2026 and beyond, the takeaway is straightforward. Buying the cheapest option may not always be the smartest decision. Homes in good locations, with sensible layouts and quality construction, are more likely to retain value and remain in demand.
