Buyer confidence rebounds in India's housing market: Magicbricks report

India’s housing market is showing signs of recovery, with the Housing Sentiment Index (HSI) climbing to 142 in the July–September 2025 (JAS) quarter, according to a report by Magicbricks. The index had dropped from 156 to 138 in the previous round. The rebound reflects improved homebuyer confidence despite high property prices and lending rates.

 

Chennai tops, Noida/Greater Noida and Kolkata follow 

Chennai topped the city rankings, followed by Noida/Greater Noida and Kolkata. The report noted that affordable and emerging markets are outperforming traditional luxury hubs, driven by infrastructure upgrades, commercial expansion, and new project launches. As a result, demand is rising in metro outskirts, where buyers are seeking better value for money.

   

The mid-market segment, priced between ₹1 crore and ₹1.5 crore, recorded the highest sentiment score of 149. Around 39 per cent of respondents preferred homes priced between ₹20 lakh and ₹75 lakh, while another 39 per cent looked at options in the ₹75 lakh–₹1.5 crore range, making the mid-segment the largest demand group.

 

Builder floors popular choice 

Buyer preferences are also shifting in terms of property type. Builder floors have overtaken plots as the most popular choice due to flexible layouts and faster delivery schedules. Semi-furnished units and compact homes between 500 and 1,000 sq. ft. remain most preferred, suggesting a tilt towards practical and efficient living spaces.

 

Millennials and Gen Y continue to drive demand, while Gen Z and Baby Boomers showed stable sentiment levels. The report said professionals with stable jobs displayed stronger optimism, and those in the ₹10 lakh–₹30 lakh annual income bracket showed the highest confidence, boosted by rising incomes and a fear of missing out on property appreciation.

 

Real estate — rewarding long-term asset 

“The rebound in housing sentiment underlines the resilience of India’s real estate market,” said Sudhir Pai, chief executive officer (CEO) of Magicbricks. “With prices and interest rates stabilising, buyers are looking at real estate as a safe and rewarding long-term asset. The growing strength of the mid-segment and the rise of new growth hubs across cities are particularly encouraging.”

 

According to the report, India’s housing market remains in a phase of steady transition. With stable prices and most buyers expecting property values to rise 6–10 per cent over the coming year, real estate continues to strengthen its position as a key avenue for long-term wealth creation and financial security.