Demand for residential real estate rose by 16.9% quarter-on-quarter and 27.7% year-on-year between April and June this year, a report has said .
Magicbricks PropIndex report said that the supply (listings) was up by 2.9% QoQ and 16.2% YoY during the period.
Indicating trends in 13 cities across the country, the report highlighted that Delhi (47.2%) witnessed the highest QoQ growth in residential demand followed by Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%), and Bengaluru (18.8%).
In terms of supply on a QoQ basis, Delhi topped the list with 10.8%, followed by Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%).
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In Noida and Greater Noida, the aggregate demand for residential markets witnessed 19.3% QoQ growth, whereas supply declined 1.6% QoQ and average prices increased 3.1% QoQ, the report said.
Demand in Mumbai's residential market increased by 16.5% QoQ owing to an increase in demand in western suburbs while supply increased by 4.5% QoQ, said the report.
As far as prices are concerned, the average prices increased by 1.2% QoQ in Mumbai. The demand and supply for 2BHK configuration constituted 43% and 44% in the city, the report said.
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Pune displayed an increase in demand to 8.1% in Q2 from 3.9% in Q1 while the supply decreased to -2% from 2.2%. In Hyderabad, residential supply continued to decrease even in Q2 2022 in the face of regulatory changes related to the monitoring of malpractices in the sector.
"The rise in residential demand across 13 Indian cities is reflective of economic recovery and income stabilisation. This is also fuelled by families returning to metros as offices and educational institutions reopen. While growing inflation, disruption of the global supply chain and increase in input cost of materials and mortgage rates are pushing up prices, overall we are seeing buyers’ confidence improving and expect India’s residential market to continue growing over the next few quarters as well," said Sudhir Pai, CEO of Magicbricks.
The report said that Bengaluru witnessed continued preference for bigger homes with 3BHK constituting 49% of the total demand and 43% of the total supply. In Chennai, the residential market has been driven by an increasing demand near the coastal areas due to the presence of IT corridors and employment hubs. Homebuyers in Chennai preferred mid-segment and premium properties over affordable housing, said the report. National Capital Delhi saw homebuyers preferring mid-segment localities.
Also Read: Real estate outlook 2022: Investment volumes into realty to match those of 2021
The report said that property prices increased by 2.5% QoQ.
It said that prices of ready-to-move properties increased 2.3% QoQ and 6.4% YoY. Prices of under-construction properties increased 2.7% QoQ and 13.3% YoY nationally.
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