India's Housing Sentiment Index Rebounds to 142, Signaling Renewed Buyer Confidence
The Magicbricks HSI Report JAS 2025 reveals a rebound in India's housing market, with Chennai leading the city rankings and mid-market homes driving demand.
Housing MarketHsiMagicbricksReal EstateChennaiReal Estate NewsOct 15, 2025
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.
Frequently Asked Questions
What is the Housing Sentiment Index (HSI)?
The Housing Sentiment Index (HSI) is a metric that measures the overall sentiment of the housing market. It is based on various factors such as buyer preferences, property prices, and market trends.
Which city topped the HSI rankings in the JAS 2025 report?
Chennai topped the HSI rankings in the JAS 2025 report, followed by Noida/Greater Noida and Kolkata.
What is the most active housing segment according to the HSI report?
The mid-market housing segment priced between ₹1–1.5 crore is the most active, recording an HSI of 149.
Who are the core demand drivers in the housing market?
Millennials and Gen Y are the core demand drivers, but Gen Z and Baby Boomers also contribute to the stable high HSI.
What factors are driving the resurgence in India's housing market?
The resurgence is driven by infrastructure development, commercial growth, new project launches, and a shift towards affordable and high-potential markets. Additionally, rising earnings and FOMO on price appreciation are key factors.
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