The demand for residential properties across 13 Indian cities increased 7.8 percent year-on-year (YoY) and 10.4 percent quarter-on-quarter (QoQ) in April-June 2023 with employment hubs such as Gurugram, Bengaluru and Greater Noida leading the trend, according to Magicbricks’ PropIndex report.
The report also observed a quarterly and annual decline of 7.4 percent and 8.3 percent, respectively, in residential supply, indicating a tightening of inventory. Owing to the supply-demand mismatch, average property rates rose 14.7 percent on a yearly basis and 2.2 percent sequentially.
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Magicbricks is a platform for buyers and sellers of property to connect.
According to Magicbricks Research, Greater Noida saw the highest increase in its average rate (32.4 percent), followed by Noida (28.7 percent), Hyderabad (23.3 percent) and Gurugram (23.1 percent). Among the major urban centres, Chennai (3 percent), Kolkata (8 percent) and Pune (10.1 percent) were the most affordable cities, a trend seen over the last two years.
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Based on the behaviour and preferences of over 20 million users on the Magicbricks platform and over 1.5 million listings, PropIndex observed that employment hubs Gurugram (28.9 percent), Bengaluru (19.7 percent), Greater Noida (18.1 percent) and Delhi (17.7 percent) were at the forefront of this growing residential demand.
Sudhir Pai, CEO, Magicbricks, said, "Despite global macroeconomic factors, which have increased interest rates, the residential demand in India has shown robust growth, especially backed by the growing importance of home ownership and the sentiment of security it brings. However, we have also observed that there is a sizeable mismatch between budget thresholds of buyers and the residential prices in many micro markets. Hence, there is an urgent need to ramp up the supply to meet the growing demand, especially in the affordable and mid-segments.”
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The report also observed that the average rates of ready-to-move (RTM) properties increased by 2.4 percent on a monthly basis and 9.8 percent on an annualised basis. The average rates of under-construction properties grew by around 1.9 percent month-on-month and 16.3 percent over the previous year, the report said.
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