Mumbai: India’s residential real estate market is witnessing a growing mismatch between buyer demand and available supply, especially in the value and affordable housing segments, according to the latest Magicbricks PropIndex OND 2025 report.

Homes priced below INR 75 lakh accounted for nearly 43% of total housing demand during the quarter. However, this segment made up only 17% of active residential listings, clearly highlighting the gap between what buyers are looking for and what the market is offering.

On the supply side, new residential launches during the quarter were largely concentrated in higher price brackets, particularly in the INR 1.5–3 crore range. This trend reflects rising land prices, construction costs, and regulatory expenses in urban markets, as well as developers continued focus on premium and upper-mid segments where margins are more stable. As a result, supply remains skewed towards higher ticket sizes, despite strong demand at lower price points.

The report also notes that demand for sub-INR75 lakh homes continues to be primarily end-user driven. Factors such as steady household formation, improving infrastructure in peripheral and emerging micro-markets, and an increasing preference for home ownership among first-time buyers are supporting demand in this segment. Even as overall housing demand saw seasonal moderation during the quarter, value-led segments showed greater resilience across major cities.

Magicbricks’ analysis suggests that addressing this demand–supply imbalance will be crucial to sustaining transaction momentum in 2026. Greater emphasis on cost-efficient development, policy support around affordable housing thresholds, and faster project execution could help align new supply with buyer expectations.

Overall, the findings reinforce a broader shift in India’s housing market towards stable, end-user-led growth, where affordability and value are likely to play a decisive role in shaping future supply strategies.