India, April 5 -- Sales of affordable homes priced under Rs.50 lakh declined by 9% year-on-year to 21,010 units in the January-March 2025 quarter across eight major Indian cities, according to a report by real estate consultancy Knight Frank India. The drop is attributed to rising home prices, elevated mortgage rates, and a supply shortage in the budget housing segment.

The report, titled India Real Estate: Residential and Office (January-March 2025), also showed that sales of homes in the Rs.50 lakh to Rs.1 crore price range declined 6%, falling to 26,832 units during the same period.

"While higher ticket-size homes have been the primary drivers of market growth, sales in the Rs.50-100 lakh and sub- Rs.50 lakh categories dropped by 6% ...