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India’s housing market is showing clear signs of recovery, according to the latest Housing Sentiment Index (HSI) Report for July–August–September (JAS) 2025 by Magicbricks. After falling from 156 to 138 in the previous survey, the index has bounced back to 142, signaling that homebuyers are regaining confidence despite high property prices and elevated interest rates.
The report highlights notable shifts in city rankings. Chennai has emerged as the top-performing city, followed closely by Noida/Greater Noida and Kolkata. The rise of these cities reflects a growing preference for affordable and high-potential markets over traditional luxury hubs. Infrastructure developments, commercial growth, and the launch of new residential projects are driving interest in peripheral areas of major metros, as buyers seek well-connected neighborhoods that offer better value.
Mid-Market Homes Lead Demand
Among property segments, mid-market homes priced between Rs. 1 crore and Rs. 1.5 crore have seen the highest activity, with an HSI of 149. Around 39% of buyers still prefer homes in the Rs. 20–75 lakh range, while another 39% are looking at properties priced between Rs. 75 lakh and Rs. 1.5 crore. The mid-segment, however, has emerged as the largest pool of demand, reflecting both affordability and aspiration.
Property type preferences are evolving as well. Builder floors have overtaken plots as the most sought-after choice, thanks to semi-customizable layouts and quicker delivery timelines. Buyers are also gravitating toward semi-furnished homes and compact, functional units measuring 500–1,000 sq. ft., reflecting a growing desire for practical yet aspirational living spaces that suit modern lifestyles.
Who’s Driving the Market?
Millennials and Gen Y continue to be the core drivers of demand, but Gen Z and Baby Boomers are contributing steadily to high HSI scores. Buyers in stable professional sectors show particularly strong sentiment, while those earning Rs. 10–30 lakh annually are the most optimistic, driven by rising incomes and a fear of missing out on future property appreciation.
Sudhir Pai, CEO of Magicbricks, notes, “The rebound in housing sentiment underlines the resilience of India’s real estate market. With prices and interest rates stabilizing, buyers are once again viewing property as a safe and rewarding long-term investment. The mid-segment and emerging city hubs are particularly strong, and developers who deliver value, connectivity, and usable space will benefit most from this renewed confidence.”
A Market in Transition
The HSI Report JAS 2025 reflects a housing market that is evolving. Buyers are aspirational yet increasingly measured in their decisions. While price expectations remain stable, most anticipate 6–10% property appreciation in the near term, reinforcing the perception of real estate as a reliable wealth-building tool.
City-wise, Chennai leads the rankings, followed by Noida/Greater Noida and Kolkata. Mid-market homes between Rs.1 crore and Rs.1.5 crore record the highest buyer sentiment at HSI 149. Builder floors now surpass plots in popularity, while compact homes in the 500–1,000 sq. ft. range are the most preferred.
As India’s housing market continues to rebound, the focus is shifting toward affordability, value, and connectivity. Buyers are becoming more discerning, developers are innovating to meet expectations, and the market is emerging stronger than ever as a preferred asset class for security, growth, and lifestyle.
