Last Updated:
The RBI cut the repo rate by 25 basis points to 6%, potentially boosting homebuyer confidence. Magicbricks’ Housing Sentiment Index dropped from 156 to 138, reflecting moderate buyer confidence.
Gurugram recorded the sharpest fall in buyer sentiment, with a 33-point drop in its housing sentiment index.
In a development that could potentially lift homebuyer confidence, the Reserve Bank of India (RBI) recently cut the repo rate by 25 basis points, effectively reducing lending rates from 6.25% to 6%—a welcome move. This policy shift is expected to ease borrowing costs and comes at a time when housing sentiment across metros has moderated due to rising prices and shifting supply patterns.
According to Magicbricks’ recent Housing Sentiment Index report, surveying 1,950 high-intent homebuyers, the housing sentiment index has dropped from a bullish 156 in July 2024 to 138 in March 2025, reflecting moderate buyer confidence.
With the new lending rates in effect, homebuyers could potentially save upto INR 1250 per month on EMIs for a ₹80 lakh home loan over 20 years, making homeownership relatively more affordable amidst inflationary pressures.
The dip in housing sentiment is aligned with Magicbricks’ recent data, which shows that while residential demand across metros grew only marginally by 0.6% QoQ in Q1 2025 (Jan–March), prices continued to increase 2.8% QoQ during the same period. This widening gap between demand and pricing is contributing to caution among prospective homebuyers.
Gurugram recorded the sharpest fall in buyer sentiment, with a 33-point drop in its housing sentiment index. This corresponds with data from Magicbricks’ PropIndex report, which highlights a 31.4% YoY increase in residential prices in Gurugram, reaching INR 15,607 per sq. ft. in Q1 2025. Mumbai (148), Delhi (138) and Bengaluru (148) also showed weak homebuyer confidence.
In contrast, Ahmedabad (157), Kolkata (149), and Hyderabad and Chennai (146) emerged as cities with the highest buyer confidence. These markets continue to offer relatively affordable investment opportunities, with average prices at INR 6,179 psf in Ahmedabad, INR 8,106 psf in Kolkata, and INR 8,770 psf in Hyderabad, alongside steady price appreciation QoQ.
The survey also revealed a growing hesitation among buyers, with 58% of respondents indicating plans to delay their home purchase due to current market conditions—an increase from 43% in 2024. A key driver of this sentiment is the visible shift in new residential supply from affordable to premium and luxury segments, impacting affordability for a large section of end users.
#Consumer #Housing #Sentiment #Weakens #RBI #Rate #Cut #Offers #Timely #Relief #Buyers #Report
