Property prices across 13 major cities in India soared 18.8 percent year-on-year (YoY) and 3.97 percent quarter-on-quarter (QoQ) in October-December 2023 with cities such as Gurugram, Greater Noida, Noida and Hyderabad observing highest increase during this period, according to Magicbricks PropIndex report.
The report also said that demand (searches) for residential property increased 2 percent YoY, however, it decreased 16.9 percent QoQ primarily due to rising property prices. The 13 cities covered in the survey include Mumbai, Navi Mumbai, Delhi, Noida, Greater Noida, Gurugram, Hyderabad, Bengaluru, Chennai, Kolkata, Pune, Ahmedabad and Thane.
Also Read: Property rents soared 22.4% YoY, 4.6% QoQ in July-September 2023: Magicbricks
Employment hubs of Gurugram witnessed highest 32.1 percent YoY appreciation in property price, followed by Greater Noida (31 percent YoY), Noida (26.1 percent YoY), and Hyderabad (15.8 percent YoY) during this period.
Abhishek Bhadra, head of research, Magicbricks, said that 2023 served as a pivotal period for the real estate sector, witnessing an exponential surge in residential demand propelled by robust macroeconomic factors and positive customer sentiment.
“However, constrained residential supply and increasing home loan rates had an inflationary impact on residential prices, subsequently declining demand this quarter. Despite these short-term challenges, we foresee a positive trajectory for residential demand in the medium to long term, anticipating a rebound in supply and moderation in residential prices,” Bhadra said.
The report stated that the affordable housing market (rate below Rs 5,000 per square foot) flourished in Ahmedabad (62 percent) and Kolkata (48 percent) and luxury properties were most searched in Mumbai Metropolitan Region (90 percent), New Delhi (58 percent) and Gurugram (48 percent).
Also Read: Residential property demand rose 7.8% YoY, 10.4% on sequential basis in April-June 2023: Magicbricks
The report stated that in northern cities such as Delhi, Greater Noida, and Noida, the demand is more inclined towards 3BHK and higher configuration units. In southern cities like Bengaluru and Chennai, smaller units lead the demand. However, there are exceptions like Kolkata and cities of MMR region with a significant portion of the demand is for 1BHK units, the report said.
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