Residential demand up 14.2%, supply grew 1.9% YoY: Magicbricks PropIndex Report, Jan-Mar’23

New Delhi/Noida, March 30, 2023: Continuing on the path of resilience and overall growth, India’s residential demand increased 14.2% and supply grew 1.9% YoY, observed Magicbricks’ PropIndex Report for January-March 2023. According to the report, after recording a marginal decline of 2.5% last quarter, residential demand (searches) increased 3.2% QoQ led by Ahmedabad (21.4%), Bengaluru (10.3%) and Pune (7%).

The report also observed that while the pan India residential supply increased 1.9% YoY, it recorded a marginal decline of 0.9% QoQ as new project launches slowed down, and the focus is on selling existing inventory. However, cities including Noida (20.8%) and Greater Noida (17.6%) demonstrated an increase in residential supply (QoQ). As a result of demand and supply mismatch, the average pan India property rate increased 13.9% YoY and 2.3% QoQ. 

Sudhir Pai, CEO, Magicbricks commented, “Several multilateral agencies have projected that the Indian economy will grow by 6-7% in FY’ 23, despite the global slowdown. The recent Union Budget has also introduced several encouraging initiatives, including substantial allocations to PMAY and UIDF, which have set the wheels in motion for facilitating employment opportunities and infrastructure development. 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. 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.”

The above parameters represent QoQ change in Jan-March 2023 

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

City-wise Highlights

Ahmedabad

• Residential demand (searches) recorded a whopping 21.4% QoQ increase. 
• Residential supply increased 1.4% QoQ 
• Average property rates spiked by 1.4% QoQ 

Bengaluru

• Residential demand in Bengaluru observed an increase of 10.3% QoQ 
• There was dip of 1.1% QoQ in supply (active listings)
• The average property rate witnessed a growth of 2.5% QoQ 
• Demand for 2BHK and above dominated the market with 86%

Chennai

• Residential demand in Chennai increased by 6.5% QoQ 
• There was a decrease in supply (listings) by 2.3% QoQ 
• The average property rate for the city dipped by 4% QoQ 
• The demand for 3BHKs increased to 45% from 40% in the previous quarter, while 2BHKs saw a QoQ dip from 47% to 43%

New Delhi

• Delhi observed a decline of 12.8% QoQ in residential demand (searches)
• The city’s supply (listings) witnessed a dip by 5.9% QoQ 
• The average property rate in the city also recorded a QoQ surge of 2.8% 
• Dwarka and Greater Kailash emerged as the most-preferred micro localities for home seekers

Gurugram

• The residential market of Gurugram witnessed a marginal decline of 1.9% QoQ 
• The residential supply (listings) increased by 2.4% QoQ 
• The average property rate in the city observed an increase by 9.3% QoQ 
• The demand share of premium properties (>INR10,000psf) increased to 26% from 18% in the previous quarter. .Supply in the segment also witnessed an increase of 7% during the same period

Hyderabad

• Hyderabad’s residential market witnessed a QoQ increase of 6% in demand (searches)
• The supply (active listing) declined by 14.2% QoQ 
• The city’s average property rate surged by 5.8% QoQ
• About 90% of the home-buyers searched for 2 and 3 BHK units. The demand for compact 1BHKs and larger than 3BHKs remained low. 

Kolkata

• During this quarter, residential demand (searches) in Kolkata increased by 6.5% QoQ 
• The supply (listings) witnessed an increase of 1.3% QoQ 
• Average property rates witnessed a growth of 1% QoQ 

Mumbai 

• The city’s residential demand (searches) in witnessed a dip by 2.4% QoQ
• The supply (listings) witnessed an increase of 0.8% QoQ 
• Average property rates witnessed a growth of 2.2% QoQ

Pune

• During this quarter, residential demand (searches) in Pune increased by 7% QoQ 
• The supply (listings) witnessed an increase of 1.8% QoQ 
• Average property rates witnessed a growth of 0.2% QoQ