A new report highlights that investor sentiment in the Indian real estate sector is growing, driven by expectations of capital appreciation and increasing rental yields. According to Magicbricks’ latest Housing Sentiment Index (HSI), which surveyed over 2,100 homebuyers, the housing sentiment has risen from 149 in April 2024 to 155 in September 2024, reflecting a strengthening of confidence in the market.

Cities like Noida and Greater Noida recorded the highest HSI scores, both at 163, signaling strong investor confidence in these areas. Gurugram, Ahmedabad, and Hyderabad followed closely with scores of 160. Meanwhile, major metros such as Delhi (HSI 151), Bengaluru, and Mumbai (HSI 148) showed relatively lower sentiment levels, likely due to rising property prices which may be dampening investor enthusiasm in these markets.

Abhishek Bhadra, Head of Research at Magicbricks, commented, “The robust Housing Sentiment Index underscores growing confidence in the real estate sector, fueled by rising incomes and financial stability. The luxury segment is particularly gaining traction, with investors focusing on high returns, rental yields, and long-term property ownership security.”

The survey also revealed a significant boost in confidence within the luxury housing market, where properties priced between INR 3.5 crore and INR 5 crore achieved an HSI score of 162.

In addition, the report showed an improvement in sentiment towards under-construction properties, with the HSI score rising from 157 in April 2024 to 161 in September 2024. This indicates a growing trust in the potential of upcoming developments and projects.

Overall, the findings suggest that the Indian real estate market is benefiting from continued optimism, supported by urbanization, rising incomes, and favorable government policies designed to encourage residential demand.

Also Read: Residential Rentals Surge in Mumbai’s Western Suburbs Amid High Demand

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