Millennials and Gen Y Fuel Housing Demand: Rs 1–1.5 Crore Homes See Highest Sentiment
Millennials and Generation Y are driving the demand for homes priced between Rs 1 crore and Rs 1.5 crore, as confidence in India's housing market continues to rise.
Housing MarketReal EstateMillennialsGen YChennaiReal Estate NewsOct 14, 2025
The rebound in this mid-market bracket, once seen as aspirational, indicates how buyers are recalibrating despite high EMIs and firm prices. Confidence is returning, particularly among end-users and upgrade buyers who view real estate as a stable long-term asset.
The HSI is a quarterly index that tracks homebuyer confidence, which rose to 142 in the July–September quarter, up from 138 earlier. A score of 100 is generally considered neutral.
While 39% of respondents still prefer homes in the Rs 20–75 lakh range and another 39% in Rs 75 lakh–Rs 1.5 crore, the upper mid-tier is pulling ahead on sentiment. Developers, too, are aligning launches to this range, with new projects in metro suburbs and emerging corridors priced around the Rs 1–1.5 crore mark.
Chennai leads the city rankings, followed by Noida/Greater Noida and Kolkata. Infrastructure growth and better connectivity are drawing buyers to peripheral zones, where mid-sized, ready-to-move homes fit both budgets and aspirations.
Additionally, builder floors have overtaken plots as the most preferred property type, offering faster possession and semi-customisable layouts. Compact 500–1,000 sq. ft. homes are also in demand, reflecting a shift toward functional but aspirational living.
Millennials and Gen Y remain the core buyers, with strong sentiment also seen among professionals earning Rs 10–30 lakh annually. Many expect property prices to rise 6–10%, prompting quicker decisions.
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.”
The overall HSI rose to 142 in the July–September quarter, up from 138, signaling that India’s housing market is regaining confidence one mid-segment home at a time.
Frequently Asked Questions
What is the Housing Sentiment Index (HSI)?
The Housing Sentiment Index (HSI) is a quarterly index that tracks homebuyer confidence in the real estate market. A score of 100 is generally considered neutral.
Which price range is seeing the highest buyer sentiment?
Homes priced between Rs 1 crore and Rs 1.5 crore are seeing the highest buyer sentiment, with the HSI score reaching 149 in Q2FY26.
Why are buyers preferring homes in the Rs 1–1.5 crore range?
Buyers are preferring homes in the Rs 1–1.5 crore range due to better infrastructure, connectivity, and the view of real estate as a stable long-term asset.
Which cities are leading in the housing market?
Chennai leads the city rankings, followed by Noida/Greater Noida and Kolkata, due to infrastructure growth and better connectivity.
Who are the core buyers in the current housing market?
Millennials and Gen Y are the core buyers, with strong sentiment also seen among professionals earning Rs 10–30 lakh annually.
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