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The dream of buying a home in India is undergoing a major shift, with buyers now placing greater emphasis on the country’s macroeconomic conditions rather than home loan interest rates. The Sentiment Index Survey for Q3 2025, released by real estate consultant, Knight Frank India.

The survey highlights the fact that GDP growth, Sensex movement, and general economic stability have become the main determinants of homebuying decision-making nowadays.

According to the report, 48 per cent of homebuyers believe that the state of the national economy over the next six months will be the biggest influence on their property purchase decisions. This marks an important departure from earlier trends, where interest rates largely dictated buyer sentiment.

According to the survey, now a day’s consumers are very much aware of the market and financially educated, they even keep monitoring the stock market and GDP growth as some prices get more or less set in real estate. This transition not only reflects but also reinforces the notion that the economic health of the area is a vital factor for the long-term property value.

In contrast, only 16 per cent of respondents still consider home loan interest rates as the most decisive factor when buying a home. This suggests that despite fluctuating or even higher borrowing costs, buyers are willing to make a purchase if they feel confident about the country’s economic direction.

The personal financial security usually steps in as the very next biggest deciding factor following the national economic performance. About 21 per cent of homebuyers said that income stability and job security would guide their choice to enter the market. The survey adds that if individuals feel secure about their employment and growth prospects, they are prepared to take the risk of purchasing a home—even in a high-interest-rate environment.

Despite cautious financial behaviour, overall market sentiment is strong. The Q3 2025 Current Sentiment Index has a score of 65, which means it is definitely considered optimistic (all scores above 50 are positive). The future confidence is even greater—the Future Sentiment Index is standing at 74, which is a clear indication of very strong buyer optimism for the next six months.

The Knight Frank survey makes one thing clear: India’s homebuyers are increasingly aligning their decisions with economic realities, stock market movements, and personal financial confidence, marking a new era in real-estate behaviour.

Akanksha is a writer who covers personal finance and commodities, with prior experience in cryptocurrency reporting. She has also covered political elections a