Residential demand increased by 7.8% YoY and 10.4% QoQ, according to Magicbricks' PropIndex report

Residential demand across 13 Indian cities increased by 7.8% year on year while 10.4% quarter over quarter (April – June 2023), a real estate platform's report said. Magicbricks in its flagship PropIndex Report observed that Gurugram, Bengaluru, Greater Noida and Delhi witnessed the highest quarter-over-quarter (QoQ ) growth in residential demand.

The report also observed a decline of 7.4% QoQ and 8.3% YoY in residential supply, indicating a tightening of inventory. Owing to the supply-demand mismatch, the average property rates increased 14.7% YoY and 2.2% QoQ.

"Despite global macro-economic 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 sizable 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,” said Sudhir Pai, CEO of Magicbricks.

The report also observed that the average rates of ready-to-move properties increased 2.4% QoQ and 9.8% YoY, and average rates of Under-construction (UC) increased 1.9% QoQ and 16.3% YoY. According to Magicbricks Research, Greater Noida saw the highest increase in its average rate (32.4%), followed by Noida (28.7%), Hyderabad (23.3%) and Gurugram (23.1%). Meanwhile, Chennai, Kolkata and Pune remained the most affordable during the last two years