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Luxury takes over: Why affordable homes are disappearing from Delhi-NCR

Terragi Updates

Affordable housing launches have plunged in recent years as developers chase higher margins and buyers with greater purchasing power, reshaping Delhi-NCR's residential market.

In the last few years, Delhi-NCR’s real estate market has seen a sharp rise in the sale of luxury housing units, driven by robust demand, with more than 4,000 units sold in H1 2025 alone. However, the data also points to a contrasting trend, as the share of affordable housing has declined drastically. In 2020, among all the housing units launched in the region, the affordable housing segment had the largest share at 62%, but by H1 2025, it had reduced to just 5%.

The data shows a sharp decline in the share of affordable housing launches in Delhi-NCR over the past six years. Affordable homes accounted for 62% of all new housing launches in 2020, making them the dominant segment. However, their share fell to 35% in 2021, briefly recovered to 41% in 2022, and then declined steeply to 15% in 2023, 11% in 2024, and just 5% in H1 2025.

Notably, these numbers are not just a reflection of trends in two different housing segments but paint a larger picture, suggesting that developers are investing more in luxury housing projects to attract high-income buyers, while at the same time, it is becoming increasingly difficult for middle-income households to buy an affordable home. According to People Research on India's Consumer Economy (PRICE), the middle class accounts for about 38% of India's population in 2025.

It means that, for many first-time buyers, the challenge is no longer just affordability, but the declining availability of homes within their budget.

“Soaring land, construction, and compliance costs have pushed developers towards higher-end projects. The margins on affordable projects are no higher than 10-12%, while premium homes, for which there is the highest demand now, can bring in profits of 25-30%and more,” Santhosh Kumar, Vice Chairman, ANAROCK Group, told Fortune India.