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India’s housing gap widens as cheaper flats shrink
Knight Frank data cited shows sub-5 million rupee flats fell from 52% of launches in 2018 to 17% by end-2025.
India’s property market has accelerated across multiple segments, but affordability is emerging as a critical gap as the share of cheaper homes declines, according to an analysis by Nicholas Spiro, a partner at Lauressa Advisory, published by the SCMP Economy.
The report says take-up of shopping centre and warehouse space hit record highs last year, and office leasing volumes in the first half of this year rose to the second-highest level for the period on record. It also points to new flat sales in India’s eight largest cities delivering one of the strongest half-year results in 12 years.
SCMP Economy also highlights a pickup in institutional investment activity, noting that transaction volumes in 2024-25 reached nearly US$20 billion, more than double the 2021-22 level.
On affordability, the outlet cites Knight Frank data showing that in 2018, flats priced below 5 million rupees (US$52,000) accounted for 52% of launches in India’s largest cities, while by the end of last year that share had dropped to 17%.