Smaller Homes See Rising Demand in India: Magicbricks

India’s housing market saw a 3.1% rise in demand during the September 2025 quarter, with buyers increasingly opting for smaller, budget-friendly homes, according to Magicbricks’ PropIndex report.

The apartments of one and two-bedrooms constitute 54% of overall demand, as compared to a drop of two years, as individuals concentrate on affordability as prices increased.

Prices of houses increased very high in big cities. The highest growth was recorded in Pune at 41.4 percent per annum, Mumbai at 29.6 percent and Greater Noida at 27.3 percent. Under-construction houses were more expensive than the ready-to-move houses particularly in Pune where the price percentage of the unfinished property had increased by 29.1 against 15.8 on the finished property.

Supply increased marginally by 1 percent compared to the last quarter but declined by 4.5 percent compared to one year ago indicative of a tight market.

Key Highlights: 

• Smaller, Affordable Homes Gain Popularity in India’s Housing Market: Magicbricks Report
• Rising Property Prices Drive Demand for Compact Apartments in Mumbai, Pune, and Greater Noida
• Magicbricks Highlights Shift Toward Mid-Segment Housing Amid Affordability Constraints

Sudhir Pai, CEO of Magicbricks, noted, “The September quarter reinforced a shift toward compact and mid-segment housing. Affordability constraints are shaping buyer behavior, but infrastructure developments and evolving consumer aspirations continue to drive demand. Developers focusing on affordability and lifestyle-aligned products will lead sustainable growth.”

In Mumbai Metropolitan Region, the interest among buyers did not decrease along with the drop in supply, as the interest was 9.7 percent in Mumbai and 10.7 percent in Navi Mumbai, which contributed to further rise in prices. This is indicative of trust in urban markets, which increased with the improvement of infrastructure and optimism in the economy.

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The increasing number of small homes underscores the way consumers are responding to exceedant costs and also finding sensible but dreamy homes to live in. Those developers who satisfy these needs are in a good position to cash in on this trend. With affordability still being a major factor, such cities as Pune, Mumbai, and Greater Noida will define the future of the Indian housing market.