New Delhi — India’s residential real estate market continues to command strong homebuyer confidence, according to the latest Housing Sentiment Index (HSI) survey report by Magicbricks, India’s No. 1 property site. The index stood at 112 in August 2026, comfortably above the neutral benchmark of 100, signalling that optimism among prospective homebuyers remains firmly intact even as the market enters a more measured and sustainable growth phase.
The report, based on responses from 2,769 prospective homebuyers across India’s top 11 residential markets, shows that buyer sentiment is transitioning from speculative enthusiasm towards realistic, fundamentals backed decision making. Nearly 69% of respondents now expect either no price appreciation or a moderate rise of up to 5% over the next year, a clear sign of a market maturing rather than slowing down.
Delhi, Gurugram and Kolkata continue to lead the country, recording the highest sentiment scores of 128, 127 and 126 respectively, reaffirming their status as India’s most confident residential markets. Notably, Mumbai was the only major city to register a year-on-year improvement, underscoring the stability of one of India’s most mature housing markets.
The findings also point to a clear structural shift towards premium and larger homes. Villas, 3+ BHK configurations, and under construction projects are drawing stronger buyer confidence, supported by expectations of long-term capital appreciation and improved developer offerings. At the same time, rental yield has emerged as the strongest investment driver by sentiment, reflecting the growing role of residential property as an income generating asset, a trend aligned with the steady improvement in rental yields across India’s key markets in recent years.
The survey also captured a notable shift in respondent demographics, with female participation more than doubling from 18% to 40% compared to the previous edition, pointing to the expanding role of women in home-buying decisions across the country.
Commenting on the findings, Mr. Prasun Kumar, Chief Marketing Officer (CMO), Magicbricks, said, “One of the most encouraging findings in this edition is the strength of Gen Z’s homeownership aspirations. Young India is entering the housing market with remarkable confidence, recording the highest sentiment of any age group, a clear sign that homeownership continues to be a deeply held aspiration for the country’s next generation. This optimism is mirrored across the market. Delhi, Gurugram and Kolkata continue to lead the country’s housing sentiment, buyers are showing growing confidence in premium and larger homes, and rental yield is emerging as a strong driver of investment. Together, these trends point to a housing market that is not just resilient but maturing in exactly the right direction.”
Homebuyers are also targeting properties valued at nearly 4.9 times their annual household income on average, reflecting that homeownership remains one of India’s strongest long-term financial aspirations, even as buyers align these ambitions with more realistic budgets and timelines.