New Delhi [India], Magicbricks' PropIndex report for April-June 2024 has revealed a 15.2 percent quarter-on-quarter (QoQ) rise in under-construction property prices in India's top 13 cities, which are Ahmedabad, Bengaluru, Chennai, Delhi, gr. Noida, Gurugram, Hyderabad, Mumbai, Navi Mumbai, Noida, Pune and Thane.
According to the report, this price increase, the highest in the last 24 months, reflects dynamic changes in demand and supply within the residential real estate market.
The report highlights that between April and June 2024, the supply of properties under construction experienced a quarter-on-quarter increase of 11.72 percent, marking the highest growth rate in residential supply in the last 24 months.This increase in availability has led to prices of under-construction properties overtaking those of ready-to-move-in properties in key cities like Gurugram, Mumbai, Noida and Thane.
Commenting on the trends, Abhishek Bhadra, Head of Research at Magicbricks said, "As we move towards 2024, the Indian real estate market has entered its third year of strong bull run. With a projected steady increase in supply and a steady pace of demand growth, we expect the market to move towards equilibrium.
He added: "In addition, continued customer confidence in under-construction properties suggests a promising outlook for the residential real estate market in the long term." Based on the preferences of more than 20 million customers on the Magicbricks platform, the report noted a steady rise in aggregate residential demand across the top 13 cities, recording strong growth of 4.6 percent quarter-on-quarter.
The northern cities of Gurugram, Delhi and Noida saw the largest increases in demand, with Gurugram leading the way with 19.6 percent quarter-on-quarter, followed by Delhi at 17 percent quarter-on-quarter and Noida at 16.4 percent. quarterly.
Despite prevailing high interest rates, residential demand has remained resilient, boosted by the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged for the eighth consecutive time."Despite higher interest rates, residential demand remains strong, driven by the fact that the Reserve Bank of India (RBI) kept the repo rate unchanged for the eighth consecutive time if key economic indicators improve and. inflation falls within a comfortable range, the RBI may consider reducing the Repo Rate, which could further stimulate demand and benefit end-users looking for affordable housing,” Bhadra added.
The supply side also showed promising growth, with a notable increase of 3.5 per cent quarter-on-quarter, especially in Thane, which saw a quarter-on-quarter increase of 15 per cent, Greater Noida with 13.8 per cent quarter-on-quarter and Noida with 7.3 percent quarter-on-quarter.
This increase in supply is a positive indicator, although demand continues to exceed available inventory, causing residential prices to continue to rise. Across the 13 cities, residential prices increased by an average of 4 percent quarter-over-quarter. Noida witnessed the highest price increase at 7 per cent quarter-on-quarter, closely followed by Gurugram at 6.8 per cent quarter-on-quarter and Mumbai at 6.5 per cent quarter-on-quarter.
These cities remain hotspots for real estate development, driven by strong infrastructure growth and robust economic activities.
In Ahmedabad, there was a moderate increase in demand of 3.5 percent quarter-on-quarter and a significant increase in supply of 6.3 percent quarter-on-quarter, but only a slight increase in prices of 0.2 percent quarter-on-quarter.Bengaluru, Despite an 8 percent quarter-on-quarter demand drop, it saw a 4.8 percent quarter-on-quarter increase in supply and a 3 percent quarter-on-quarter price increase, indicating a complex market scenario.
Chennai saw a demand rise of 11.9 per cent quarter-on-quarter, with a modest supply increase of 2.5 per cent quarter-on-quarter and price rise of 2.9 per cent quarter-on-quarter.
Delhi saw a 17 percent quarter-on-quarter rise in demand, despite a 3.9 percent quarter-on-quarter decline in supply, leading to a 4.3 percent quarter-on-quarter price rise. Greater Noida showed strong growth of demand of 15.5 percent quarter-on-quarter and an increase in supply of 13.8 percent quarter-on-quarter, with a price increase of 5.9 percent quarter-on-quarter.
Gurugram saw the highest increase in demand at 19.6 per cent quarter-on-quarter, while supply increased by 5.3 per cent quarter-on-quarter and prices rose by 6.8 per cent quarter-on-quarter.
Hyderabad saw a slight increase in demand of 1.5 percent quarter-on-quarter, and supply and prices increased by 5.3 percent quarter-on-quarter and 2.3 percent quarter-on-quarter, respectively. Kolkata witnessed a quarter-on-quarter rise in demand of 9.8 percent, despite a slight supply decrease of 0.9 percent quarter-on-quarter and a price increase of 3.5 percent quarter-on-quarter.
Mumbai recorded a demand increase of 6.7 percent quarter-on-quarter, supply increased by 5.3 percent quarter-on-quarter and prices increased by 6.5 percent quarter-on-quarter.
Navi Mumbai saw a slight increase in demand of 1.4 percent quarter-on-quarter, despite a supply decline of 4.2 percent quarter-on-quarter and a price increase of 1.7 percent quarter-on-quarter. Noida continued to experience a strong demand growth of 16.4 percent quarter-on-quarter, with supply increasing 7.3 percent quarter-on-quarter and price increases of 7 percent quarter-on-quarter.
Pune saw a negligible demand increase of 3.2 percent q-o-q and a negligible supply decline of 0.1 percent q-o-q, with prices rising 2.1 percent q-o-q. Thane exhibited moderate demand growth of 2.1 percent quarter-on-quarter, with supply increasing by 15 percent quarter-on-quarter and a slight price increase of 0.7 percent quarter-on-quarter.
According to the report, this price increase, the highest in the last 24 months, reflects dynamic changes in demand and supply within the residential real estate market.
The report highlights that between April and June 2024, the supply of properties under construction experienced a quarter-on-quarter increase of 11.72 percent, marking the highest growth rate in residential supply in the last 24 months.This increase in availability has led to prices of under-construction properties overtaking those of ready-to-move-in properties in key cities like Gurugram, Mumbai, Noida and Thane.
Commenting on the trends, Abhishek Bhadra, Head of Research at Magicbricks said, "As we move towards 2024, the Indian real estate market has entered its third year of strong bull run. With a projected steady increase in supply and a steady pace of demand growth, we expect the market to move towards equilibrium.
He added: "In addition, continued customer confidence in under-construction properties suggests a promising outlook for the residential real estate market in the long term." Based on the preferences of more than 20 million customers on the Magicbricks platform, the report noted a steady rise in aggregate residential demand across the top 13 cities, recording strong growth of 4.6 percent quarter-on-quarter.
The northern cities of Gurugram, Delhi and Noida saw the largest increases in demand, with Gurugram leading the way with 19.6 percent quarter-on-quarter, followed by Delhi at 17 percent quarter-on-quarter and Noida at 16.4 percent. quarterly.
Despite prevailing high interest rates, residential demand has remained resilient, boosted by the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged for the eighth consecutive time."Despite higher interest rates, residential demand remains strong, driven by the fact that the Reserve Bank of India (RBI) kept the repo rate unchanged for the eighth consecutive time if key economic indicators improve and. inflation falls within a comfortable range, the RBI may consider reducing the Repo Rate, which could further stimulate demand and benefit end-users looking for affordable housing,” Bhadra added.
The supply side also showed promising growth, with a notable increase of 3.5 per cent quarter-on-quarter, especially in Thane, which saw a quarter-on-quarter increase of 15 per cent, Greater Noida with 13.8 per cent quarter-on-quarter and Noida with 7.3 percent quarter-on-quarter.
This increase in supply is a positive indicator, although demand continues to exceed available inventory, causing residential prices to continue to rise. Across the 13 cities, residential prices increased by an average of 4 percent quarter-over-quarter. Noida witnessed the highest price increase at 7 per cent quarter-on-quarter, closely followed by Gurugram at 6.8 per cent quarter-on-quarter and Mumbai at 6.5 per cent quarter-on-quarter.
These cities remain hotspots for real estate development, driven by strong infrastructure growth and robust economic activities.
In Ahmedabad, there was a moderate increase in demand of 3.5 percent quarter-on-quarter and a significant increase in supply of 6.3 percent quarter-on-quarter, but only a slight increase in prices of 0.2 percent quarter-on-quarter.Bengaluru, Despite an 8 percent quarter-on-quarter demand drop, it saw a 4.8 percent quarter-on-quarter increase in supply and a 3 percent quarter-on-quarter price increase, indicating a complex market scenario.
Chennai saw a demand rise of 11.9 per cent quarter-on-quarter, with a modest supply increase of 2.5 per cent quarter-on-quarter and price rise of 2.9 per cent quarter-on-quarter.
Delhi saw a 17 percent quarter-on-quarter rise in demand, despite a 3.9 percent quarter-on-quarter decline in supply, leading to a 4.3 percent quarter-on-quarter price rise. Greater Noida showed strong growth of demand of 15.5 percent quarter-on-quarter and an increase in supply of 13.8 percent quarter-on-quarter, with a price increase of 5.9 percent quarter-on-quarter.
Gurugram saw the highest increase in demand at 19.6 per cent quarter-on-quarter, while supply increased by 5.3 per cent quarter-on-quarter and prices rose by 6.8 per cent quarter-on-quarter.
Hyderabad saw a slight increase in demand of 1.5 percent quarter-on-quarter, and supply and prices increased by 5.3 percent quarter-on-quarter and 2.3 percent quarter-on-quarter, respectively. Kolkata witnessed a quarter-on-quarter rise in demand of 9.8 percent, despite a slight supply decrease of 0.9 percent quarter-on-quarter and a price increase of 3.5 percent quarter-on-quarter.
Mumbai recorded a demand increase of 6.7 percent quarter-on-quarter, supply increased by 5.3 percent quarter-on-quarter and prices increased by 6.5 percent quarter-on-quarter.
Navi Mumbai saw a slight increase in demand of 1.4 percent quarter-on-quarter, despite a supply decline of 4.2 percent quarter-on-quarter and a price increase of 1.7 percent quarter-on-quarter. Noida continued to experience a strong demand growth of 16.4 percent quarter-on-quarter, with supply increasing 7.3 percent quarter-on-quarter and price increases of 7 percent quarter-on-quarter.
Pune saw a negligible demand increase of 3.2 percent q-o-q and a negligible supply decline of 0.1 percent q-o-q, with prices rising 2.1 percent q-o-q. Thane exhibited moderate demand growth of 2.1 percent quarter-on-quarter, with supply increasing by 15 percent quarter-on-quarter and a slight price increase of 0.7 percent quarter-on-quarter.
