Indian residential demand increased by 14.2 percent between January and March: Report

The report also observed that while the pan-India residential supply increased 1.9 percent YoY, it recorded a marginal decline of 0.9 percent QoQ as new project launches slowed down, and the focus shifted to selling existing inventory.

India’s residential demand increased 14.2 percent and supply grew 1.9 percent year-on-year (YoY) between January and March, a report said.

After recording a marginal decline of 2.5 percent last quarter, pan-India residential demand (searches) increased 3.2 percent quarter-on-quarter (QoQ) with Ahmedabad (21.4percent), Bengaluru (10.3 percent) and Pune (7 percent) leading the list, according to Magicbricks’ PropIndex Report for January-March 2023.

According to the report, Delhi, Gurugram, Mumbai and Noida saw a drop in demand between January and March while Bengaluru, Chennai and Delhi saw a dip in the supply of new inventory.

The report also observed that while the pan-India residential supply increased 1.9 percent YoY, it recorded a marginal decline of 0.9 percent QoQ as new project launches slowed down, and the focus shifted to selling existing inventory.

However, cities including Noida (20.8 percent) and Greater Noida (17.6 percent) saw an increase in residential supply (QoQ).

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As a result of the demand and supply mismatch, the average pan-India property rate increased 13.9 percent YoY and 2.3 percent QoQ, the report said.

The report added that the pan-India average rates of ready-to-move-in properties increased 9.3 percent YoY, and average prices of under-construction properties increased 15.3 percent YoY.

“Several multilateral agencies have projected that the Indian economy will grow by 6-7 percent in FY 23, despite the global slowdown. Given the under-served demand for home ownership in the affordable and mid-range segment, we are optimistic about the growth trajectory for residential demand in the coming quarters as well," said Sudhir Pai, chief executive officer of Magicbricks.

“We anticipate that the market will stabilise, supplemented by new projects and expedited delivery of under-construction properties, which will open up new avenues for investment and innovation,” he added.