Residential demand up 7.3%, supply grows 6% YoY: Magicbricks PropIndex Report Q3’22

New Delhi/Noida, September 28, 2022: Magicbricks PropIndex Report for Q3, 2022 reveals that the aggregate demand (searches) increased 7.3% YoY, the cumulative supply (listings) grew 6.0% YoY and prices increased 9.1% YoY.  The report further observes that the average price increased 2% QoQ with a marginal dip in aggregate demand (2.9%) and cumulative supply (3.3%) QoQ. 

Mapping trends in 13 cities across the country, the report highlights that Greater Noida (9.9%), Gurugram (3.7%), Bengaluru (3.7%) and Mumbai (1.9%) witnessed the highest QoQ growth in residential demand while Bengaluru (0.3%), Kolkata (0.9%), Navi Mumbai (1.3%) and Mumbai (2.1%) exhibited decline in residential supply QoQ. 

Elaborating on the trends, Sudhir Pai, CEO, Magicbricks commented, “After uncertainty in the past few years, 2022 has ushered in relative stability and recovery for the residential sector. Home sales have been strong all year, and the upcoming festive season is likely to further spur the growth as it is considered an auspicious time to make real estate investments. To facilitate access to properties with lucrative offers and deals, we are excited to launch the 6th edition of our Dream Home Festival (DHF) from 1st October 2022 and are confident that this year will also mirror the success of previous editions.”

Market-specific takeaways from Magicbricks’ Propindex Report Q3, 2022:

1. Bengaluru’s residential demand grew 3.7% QoQ while the supply observed a slight decline of 0.3% QoQ, and property rates increased 2.7% QoQ. There was a continued preference for bigger homes with 3BHK constituting 49% of the total demand and 43% of the total supply.  

2. Chennai’s residential market registered a slump with demand dropping 9.2% QoQ while the supply dipped 5.2% QoQ. The residential prices in the city increased 2.1% QoQ. Homebuyers in the city seem to have a strong preference for 2BHKs, which constitute 43% of the total demand and 50% of the total supply.  

3. Delhi’s residential demand remained subdued with a decline of 12.8% QoQ while the supply reduced 4.4% QoQ. Property prices increased QoQ 1.2%. The residential market was dominated by 3BHKs with 49% demand and 47% supply share. 

4. Demand in Mumbai’s residential market increased 1.9% QoQ while supply declined 2.1% QoQ; average prices increased 2.1% QoQ. The demand and supply for 2BHK configuration constituted 42% and 43% respectively in Q3, 2022. 

5. In Noida and Greater Noida, the aggregate demand and supply for residential markets declined 2.0% QoQ and 11.2% QoQ (respectively) and average prices increased by 1.9% QoQ.

6. Demand in Gurugram grew 7.4% QoQ, whereas supply declined 3.8% QoQ and average prices increased 1.5% QoQ. Homebuyers displayed a preference for mid and premium segment properties. 

7. Demand in Ahmedabad declined 1.5% QoQ while supply dropped 4.0% QoQ; average prices increased 1.1% QoQ. The 3BHK units continue to hold a majority share in the market with demand and supply of 44% and 45% respectively

8. Kolkata’s residential market was driven by demand for affordable properties with 2 and 3 BHK configurations accounting for 86% of the total demand and 87% of the total supply. Overall, the residential demand in the city declined 2.2% QoQ while the supply reduced by 0.9% QoQ. The average property rates increased 1.8% QoQ.

Highlights from Magicbricks’ PropIndex Report Q3, 2022 

• Pan India demand dipped 2.9% QoQ and grew 7.3% YoY. Greater Noida (9.9%), Gurugram (3.7%), Bengaluru (3.7%), and Mumbai (1.9%) witnessed the highest QoQ growth in demand
• Cumulative supply declined 3.3% QoQ but increased 6.0% YoY. Supply in Bengaluru (0.3%), Kolkata (0.9%), Navi Mumbai (1.3%) and Mumbai (2.1%) declined QoQ
• Pan-India prices increased 2.0% QoQ & 9.1% YoY; reflecting the buoyancy of residential markets 
• Prices of ready-to-move properties increased 1.5% QoQ and 8.8% YoY. Property rates in Noida, Greater Noida, Bengaluru and Hyderabad increased 3.3%, 2.9%, 2.0%, and 2.0% QoQ respectively
• Prices of under-construction properties increased 3.8% QoQ and 13.4% YoY. Prices in Navi Mumbai, Bengaluru, Gurugram and Chennai increased  5.4%, 5.3%, 5.2%, and 4.5% QoQ respectively

The report further observes that real estate developers are launching projects with new features in anticipation of high demand. The recent increase in home loan rates is also not expected to impact demand because they are still lower than the pre-pandemic rates.