Monday, July 4, 2022

Residential Demand Increased By 16.9% In Apr-Jun And 27.7% YoY: Reveals Magicbricks PropIndex Report


Magicbricks PropIndex Report

·         Pan-India supply grew 2.9% QoQ* and 16.2% YoY** with Delhi (10.8%) and Bengaluru (6.7%) witnessing maximum QoQ growth in supply

·         Pan-India prices increased by 2.4% QoQ & 8.0% YoY; reflecting the resilience of residential markets vis-a-vis other real estate assets  

·         Delhi (47.2%), followed by Ahmedabad (21.4%) witnessed the highest QoQ growth in residential demand

The Indian residential real-estate market exhibited strength in Q2, 2022, with pan India residential demand (searches) rising by 16.9% QoQ and 27.7% YoY and supply (listings) by 2.9% QoQ and 16.2% YoY, as per Magicbricks’ latest PropIndex Report for Q2, 2022. The growth reflects a promising comeback from the pandemic-induced slowdown and the overall economic recovery across sectors. Mapping trends in 13 cities across the country, the report highlights that Delhi (47.2%), Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%), and Bengaluru (18.8%) witnessed the highest QoQ growth in residential demand while Delhi (10.8%), Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%) exhibited maximum QoQ growth in supply.

“The rise in residential demand across 13 India cities is reflective of economic recovery and income stabilisation. This is also fuelled by families returning to metros as offices and educational institutions reopen. While growing inflation, disruption of the global supply chain and increase in input cost of materials & mortgage rates are pushing up the prices, overall we are seeing buyer’s confidence and expect India’s residential market to continue growing over the next few quarters as well.” shared Sudhir Pai, CEO, Magicbricks.

Regardless of the headwinds created by the multiple waves of Covid-19, Magicbricks Research anticipates a stable growth curve for India's residential sector throughout 2022.

Market-specific takeaways from Magicbricks’ Propindex Report Q2, 2022:

1. Bengaluru’s residential demand observed a substantial growth with an increase of 18.8% QoQ while the supply observed a growth of 6.7% 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 has been driven by an increasing demand near the coastal areas due to the presence of IT corridors and employment hubs. The demand grew 13.0% QoQ while the supply grew 5.1% QoQ with an increase of 1.6% QoQ in the average property rates. Homebuyers in the city seem to have a strong preference for mid-segment and premium properties over affordable housing.

3. Delhi's residential demand grew nearly 1.5 times with an increase of 47.2% QoQ with a preference for mid-segment localities while the supply increased to 10.8% QoQ. Property prices also witnessed a QoQ increase of 2.5%. The residential market was dominated by 2BHK and 3BHK, which constituted a total of 82% of the demand share. In Noida and Greater Noida, the aggregate demand for residential markets witnessed a 19.3% QoQ growth, whereas supply declined by 1.6% QoQ and average prices increased by 3.1% QoQ.

4. Ahmedabad’s residential market demand increased to 21.4% QoQ while supply increased by 4.7% QoQ; average prices increased 1.6% QoQ. The 3BHK units continue to hold a majority share in the market with demand and supply of 45% and 46% respectively; decline in the demand for premium properties to 12%  in Q2, 2022.

5. Kolkata’s residential market was driven by demand for affordable properties. The demand grew 21.2% QoQ while the supply grew 5.1% QoQ. The average property rates also increased 1.7% QoQ; 2 and 3 BHK configurations accounted for 87% of the total demand as well as supply.

6. Demand in Mumbai's residential market increased 16.5% QoQ owing to an increase in the demand in the western suburbs while supply increased by 4.5% QoQ; average prices increased 1.2% QoQ. The demand and supply for 2BHK configuration constituted 43% and 44% respectively in Q2, 2022.

7. Pune displayed a sharp increase in demand (from 3.9% in Q1, 2022 to 8.1% in Q2, 2022) and the average prices (from 0.5% in the previous quarter to 1.3% in Q2, 2022). Supply showed a reverse trend (From 2.2% to -2.0% in the current quarter).

8. In Hyderabad, residential supply continued to decrease even in Q2 2022 in the face of regulatory changes. It is encouraging to see that the State Government has introduced measures to monitor malpractices in the sector. Overall, the residential demand was largely stable (0.2% QoQ growth), while the average rate increased by nearly 3%.

Highlights from Magicbricks’ PropIndex Report Q2, 2022

- Pan India demand increased 16.9% QoQ and 27.7% YoY. Delhi (47.2%), Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%), and Bengaluru (18.8%)  witnessed the highest QoQ growth in demand

- Cumulative supply grew 2.9% QoQ and 16.2% YoY. Delhi (10.8%), Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%) witnessed maximum QoQ growth in supply

- Pan-India prices increased 2.4% QoQ and 8.0% YoY, reflecting the resilience of the housing markets vis-a-vis other real estate assets 

- Prices of ready-to-move properties increased 2.3% QoQ and 6.4% YoY. Greater Noida, Thane, Delhi, and Ahmedabad witnessed the highest QoQ rate rise of 4.0%, 3.7%, 2.8%, and 2.6% respectively

- Prices of under-construction properties increased 2.7% QoQ and 13.3% YoY nationally. Prices in Noida, Hyderabad, Gurugram and Gr. Noida increased 7.3%, 5.0%, 4.4%, and 3.4% QoQ respectively

About Magicbricks: India's no 1 property site 

As the largest platform for buyers and sellers of property to connect in a transparent manner, Magicbricks has monthly traffic exceeding 2 crores and an active base of over 15 lakh property listings. Magicbricks has metamorphosed into a full-stack service provider for all real estate needs, with 15+ services including home loans, pay rent, movers and packers, legal assistance, property valuation, and expert advice.

With 15+ years of experience and deep research-based knowledge, Magicbricks also presents a repertoire of insight-driven platforms like MBTV- India’s leading online real estate YouTube channel, and other proprietary tools so that home buyers can access all information related to price trends and forecasts, locality reviews and more.

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