New Delhi: Delhi, Gurugram, and Kolkata recorded the highest housing sentiment among India’s residential markets, even as the national Housing Sentiment Index (HSI) stood at 112 in August 2026, according to the latest HSI survey report by Magicbricks.
The index remained above the neutral benchmark of 100, indicating that homebuyer confidence continues to be positive despite a moderation in sentiment. The survey, based on responses from 2,769 prospective homebuyers across India’s top 11 residential markets, also indicates a shift from speculative enthusiasm towards more measured, fundamentals-backed housing decisions.
Nearly 69% of respondents expect either no price appreciation or a moderate increase of up to 5% over the next year. The finding indicates that prospective buyers are becoming more realistic about price expectations while continuing to show confidence in residential real estate as a long-term asset.
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Delhi recorded the highest HSI score at 128, followed by Gurugram at 127 and Kolkata at 126. The three markets continued to lead the country in housing sentiment, reflecting strong confidence among prospective homebuyers.
Mumbai was the only major city to record a year-on-year improvement in sentiment, according to the survey. The finding highlights the stability of one of India’s most mature residential markets even as overall housing sentiment has moderated.
The survey also points to stronger buyer confidence in premium and larger homes. Villas, 3+ BHK configurations and under-construction projects are attracting greater confidence, supported by expectations of long-term capital appreciation and improved developer offerings.
Rental yield emerged as the strongest investment driver by sentiment, highlighting the growing importance of residential property as an income-generating asset. The trend is aligned with the steady improvement in rental yields across India’s key markets in recent years.
The profile of homebuyers represented in the survey has also changed significantly. Female participation more than doubled from 18% in the previous edition to 40%, indicating the expanding role of women in home-buying decisions across the country.
The survey also found that Gen Z recorded the highest housing sentiment among all age groups, pointing to strong homeownership aspirations among younger Indians.
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.”
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Homebuyers are targeting properties valued at nearly 4.9 times their annual household income on average, according to the report. The finding suggests that homeownership remains one of India’s strongest long-term financial aspirations, even as buyers increasingly align their housing ambitions with realistic budgets and timelines.
Overall, the August 2026 HSI findings indicate that India’s residential market continues to retain buyer confidence, while expectations around price appreciation, affordability and investment returns are becoming more measured.
