Source: News18 ( https://bit.ly/3Kgtude )

India’s housing market appears to be waking up again. The latest edition of the national Housing Sentiment Index (HSI) — covering July–September 2025 — shows a rebound to a score of 142, up from 138 in the previous quarter. This signals renewed buyer optimism and a shift from the caution that followed price and interest-rate volatility earlier in the year.

What’s driving this renewed confidence? For one, stabilization in interest rates and real-estate pricing means buyers feel more secure about committing to purchases. Amid this backdrop, demand is especially strong for mid-market homes — typically priced between ₹1–1.5 crore, with these homes recording the highest sentiment score of 149. Buyers in lower price segments (₹20–75 lakh and ₹75 lakh–₹1.5 crore) also account for a significant portion of interest, indicating that demand is broad-based across affordability levels.

Beyond budget, buyer preferences appear to be shifting fundamentally. Compact, efficient living spaces — especially builder-floors and flats between 500–1,000 sq. ft. — are becoming more popular than large plots. Semi-furnished homes with quicker delivery timelines seem particularly attractive, likely due to cost efficiencies, lower maintenance, and faster move-ins. Developers, in response, are focusing more on delivering value-oriented projects rather than just large, luxury-oriented developments.

Geographically, the rebound isn’t limited to traditional metro hubs. Peripheral areas and satellite towns around major cities are seeing revived interest, fueled by new infrastructure, better connectivity, and the appeal of value-for-money housing away from congested city centers.

Overall, the latest HSI suggests that despite macroeconomic challenges and cost pressures, buyer sentiment is improving. For developers and investors, this could mark a turning point: a return to stable demand, especially in the mid-segment, and increased viability for well-priced, timely-delivery, compact housing projects.