India’s Housing Sentiment Index Rebounds To 142, Signaling Renewed Buyer Confidence: Report

India’s housing market is witnessing a steady resurgence, as revealed in the latest Housing Sentiment Index (HSI) Report JAS 2025 by Magicbricks. After dipping from 156 to 138 in the previous round, the HSI has

rebounded to 142, indicating that homebuyers are recalibrating despite elevated prices and interest rates.

The survey highlights a reshuffling of city rankings, with Chennai emerging 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 ₹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.

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.