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Compact Homes Lead Demand as Indian Housing Market Stabilises: Magicbricks
Articles- Oct 07,25
The share of 1–2 BHK units rose to 54 per cent of total demand, reversing a two-year decline and signalling renewed focus on affordability.
Magicbricks, India’s leading real estate platform, has released its PropIndex Report for July–September 2025, revealing signs of stabilisation in the housing market. Despite affordability pressures, housing demand grew 3.1 per cent QoQ, driven largely by compact homes. The share of 1–2 BHK units rose to 54 per cent of total demand, reversing a two-year decline and signalling renewed focus on affordability.
While overall supply increased marginally by 1 per cent QoQ (–4.5 per cent YoY), property prices continued to rise. Pune (+41.4 per cent YoY), Mumbai (+29.6 per cent YoY), and Greater Noida (+27.3 per cent YoY) recorded the highest annual price gains, supported by strong demand and limited new supply. Under-construction homes remained costlier than ready-to-move units, with Pune witnessing UC prices up +29.1 per cent QoQ versus +15.8 per cent for RM homes.
Regionally, Delhi NCR saw robust demand growth—Delhi (+10.3 per cent QoQ), Noida (+6.3 per cent QoQ), and Greater Noida (+3.8 per cent QoQ)—driven by major infrastructure projects such as the Dwarka Expressway and RRTS corridors. The Mumbai Metropolitan Region (MMR) maintained buyer momentum despite supply tightening (Mumbai –9.7 per cent QoQ, Navi Mumbai –10.7 per cent QoQ), resulting in strong price appreciation. In the South, Bengaluru continued to expand with demand up +5.9 per cent QoQ and prices +3.9 per cent QoQ, while Chennai saw a –5.4 per cent QoQ dip in demand even as new launches rose +1.9 per cent QoQ.
Sudhir Pai, CEO, Magicbricks, said, “The July–September 2025 quarter reinforced a fundamental market shift toward compact and mid-segment housing. While affordability constraints are shaping buyer behaviour, infrastructure-led optimism and evolving consumer aspirations continue to fuel demand across key markets.”
The PropIndex Q3 2025 findings indicate that India’s residential sector is entering a phase of measured, end-user-driven growth, guided by affordability, infrastructure development, and evolving buyer preferences.
Magicbricks
Indian housing market
PropIndex report
compact homes
affordable housing
real estate prices
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