India’s housing market is showing clear signs of renewed optimism. According to Magicbricks’ latest Housing Sentiment Index (HSI) Report JAS 2025, the index has rebounded to 142 after slipping to 138 in the previous quarter, signaling a revival in buyer confidence despite high property prices and interest rates.

The report highlights shifting dynamics in homebuyer preferences, with Chennai topping city rankings, mid-market homes leading demand, and emerging peripheral hubs across metros drawing greater attention from value-seeking buyers.

Chennai emerged as the top-performing city, followed by Noida/Greater Noida and Kolkata. Affordable and high-potential markets are increasingly outpacing traditional luxury hubs, aided by infrastructure development, commercial growth, and new project launches. Therefore, peripheral areas across metros are drawing more interest, as buyers seek value in well-connected outskirts.

The mid-market housing segment priced between ₹1–1.5 crore has emerged as the most active, recording an HSI of 149. While 39% of buyers continue to prefer homes in the ₹20–75 lakh range and another 39% in the range of ₹75 lakh–₹1.5 crore, the mid-segment is now the largest pool of demand.

Property type choices are also evolving, with builder floors overtaking plots as the most sought-after option, thanks to their semi-customisable layouts and faster delivery timelines. Semi-furnished homes and compact, functional units between 500–1,000 sq. ft. lead preferences, reflecting a growing inclination for practical yet aspirational living spaces.

Millennials and Gen Y remain the core demand drivers, but Gen Z and Baby Boomers are the stable high HSI. Higher sentiment was recorded among professionals in stable sectors, while the ₹10–30 lakh annual income group showed the strongest housing sentiment, fueled by rising earnings and a fear of missing out (FOMO) on price appreciation.

Sudhir Pai, CEO, Magicbricks, said, “The rebound in housing sentiment underlines the resilience of India’s real estate market. With prices & interest rates stabilizing, buyers are looking at real estate as a safe and rewarding long-term asset. What’s encouraging is the growing strength of the mid-segment and the rise of new growth hubs across Indian cities. Developers who can deliver value, space, and connectivity will be best placed to capitalize on this renewed confidence.”

The HSI Report JAS 2025 highlights a market in transition, where aspirations are rising but decisions are becoming more measured. With price expectations stable and most buyers anticipating 6–10% property appreciation, India’s housing market continues to cement its position as a preferred asset class for wealth creation and security.