*Residential demand increased YoY across cities including Mumbai (52.1%), Noida (35.8%), Gurugram (34.5%) and Bengaluru (33%)
*Pan-India average rate increased 13.9% YoY
*Residential supply increased YoY across cities including Mumbai (13.4%), Bengaluru (8.4%), Chennai (2.9%) and Delhi (2.1%)
The Indian residential market demonstrated resilience and overall growth in 2022, observed Magicbricks’ PropIndex Report for October-December, 2022. According to the report, the aggregate residential demand (searches) increased 19% YoY led by major cities such as Mumbai (52.1%), Noida (35.8%), Gurugram (34.5%), Delhi (14.8%) and Bengaluru (33%).
The report further observed that the average rate increased 13.9% YoY and the cumulative supply (listings) grew 2.7% YoY. Noida (13.7%), Greater Noida (12.3%), Hyderabad (11. 7%) and Thane (8.1%) witnessed the highest increase in average rate YoY; and Mumbai (13.4%), Bengaluru (8.4%) and Thane (4.1%) saw the highest YoY increase in residential supply. The report also observed that 2 and 3 BHK units were the most preferred across these 12 cities. While cities like Kolkata, Chennai, Hyderabad continue to see a surge in demand for affordable units, other big metro cities like Bengaluru, New Delhi and Mumbai are attracting demand for mid-segment residences.
Elaborating on the trends, Sudhir Pai, CEO, Magicbricks commented, “In 2022, residential demand, supply and prices recovered, and the year bode well for both under-construction and ready-to-move-in houses. Despite consecutive hikes in the Repo Rate and home loan rates in the past quarters, end-users remained keen on home buying, encouraging developers to accelerate new project launches while delivering their existing projects. Overall, we are optimistic that the residential demand will be largely sustained in 2023 as well.”
The report further observed that the pan-India average rates of ready-to-move-in properties increased 9.0% YoY, and average prices of under-construction properties increased 15.3% YoY.
City-wise Highlights
Ahmedabad
Ahmedabad recorded a dip of 11.3% in demand (searches)
Decline by 1.2% in supply (listings) QoQ
Average property rates spiked by 1.7% QoQ.
Launch of Ahmedabad Metro Phase 1, which includes the East-West and North-South corridors, the demand, and supply for properties are expected to improve in their catchment areas.
SG Highway and Bopal continue to have the highest demand
3 BHK units priced between INR 4,000-6,000 psf are preferred by the majority of homebuyers in
Ahmedabad
Bengaluru
Bengaluru’s residential market observed an increase of 1.5% QoQ in demand (searches)
New project launches in the peripheral areas led to 1.1% QoQ increase in supply (active listings)
The average property rate for the city witnessed a growth of 2.2% QoQ
Post-pandemic, Bengaluru witnessed a large section of the non-local workforce resuming work from office
This factor has largely contributed to a sizable 33% surge in demand YoY. However, supply grew
by 8.4% YoY, thereby exhausting the existing inventory.
Consequently, the rates of both RM and UC properties have surged
Over the past few quarters, East Bengaluru has sustained its position as the most preferred
location for home buyers
2 and 3 BHK units priced between INR 5,000-7,500 psf largely dominate the residential real
estate market in Bengaluru
Chennai
In Q4 of 2022, Chennai’s residential market witnessed a QoQ dip of 4.8% in demand (searches),
the supply (active listing) grew by 1.6%
Further, average property rates witnessed an increase of 1.6% QoQ
2 BHK units priced between INR 5,000-10,000 psf dominate the residential real estate market in
Chennai
The revised property tax in Chennai deterred the growth of residential demand in the city over the last 2 quarters
However, ongoing commercial and industrial development and proposed metro connectivity
along with a greenfield airport are likely to drive demand for Chennai’s real estate market in the
coming year
OMR remains top micro-market in Chennai
New Delhi
In Q4 2022, Delhi observed a decline of 18.1% QoQ in residential demand (searches)
The city’s supply (listings) saw a revival and rose by 2.6% QoQ
The average property rate in the city also recorded a QoQ surge of 3.3%, due to rise in input costs
Due to the existing inflationary pressures, the average rate for UC properties saw a significant
upward movement of 8% QoQ, while RM properties also appreciated by 2.9% during this time
DLF, Unity Group, and Godrej Properties were the top developers on the basis of active listings
during the quarter
3 BHKs and houses priced under INR 10,000 psf were the most searched units in Delhi
Dwarka and Janakpuri continued to be the most favoured residential destination
Gurugram
After gaining major traction over the past three quarters, the residential market of Gurugram
witnessed a marginal decline of 2.3% QoQ in demand (searches)
The residential supply (listings) remained stable showing a QoQ decline of only 0.5%.
However, the average property rate in the city observed a third consecutive quarterly hike,
increasing by 4.8% in October-December after a 1.5% growth in the previous quarter.
During October-December, the average rates of both RM and UC properties appreciated by
4.5% and 6.0% QoQ, respectively.
New Gurugram and Sohna Road continue to be the most preferred localities for homebuyers
Gurugram registered highest demand and supply concentration for 3 BHKs & > 3 BHKs, while the mid-segment of INR 5,000-10,000 remained the most searched criteria
Hyderabad
In Q4 2022, Hyderabad’s residential market witnessed a QoQ dip of 2.2% in demand (searches)
The supply (active listing) grew by 4.9%
The city’s average property rate surged by 4.2% QoQ
The entry of many small developers in Hyderabad’s residential market has inflated the inventory
resulting in large volumes of unsold stock
Western Hyderabad remains the most preferred real estate hotspot
Affordability reigns supreme as < INR 5,000 psf is the most search criteria for homebuyers
Kolkata
During this quarter, residential demand (searches) in Kolkata declined by 13.7% QoQ but registered a YoY increase of 4.4%
The supply (listings) witnessed a decline of 0.6% QoQ, but remained stable YoY
Average property rates witnessed a growth of 2.1% QoQ and 7.6% YoY owing to an increase in
input costs
Kolkata has contributed a share of around 6% in demand and 9% in supply in the major Indian
residential real estate markets over the past year
Affordable properties dominate Kolkata’s residential market
Demand and supply are spatially well distributed all over Kolkata
Mumbai
In Q4 2022, Mumbai’s residential market witnessed a growth of 7.6% QoQ in demand (searches)
The supply (listings) increased by 7.2% QoQ and average property rate increased 1.3% QoQ
The quarter was characterized by an increase in new launches and the completion of many under-
construction projects across the city
These factors have invigorated the market and scaled up demand
With the operations of metro lines 2A and 7 to commence by January 2023, demand and supply
are expected to increase even further
Key western suburb markets witnessed maximum traction in Q4 2022
2 BHKs priced between INR 15,000-25,000 psf preferred by homebuyers in Mumbai
Navi Mumbai
Rresidential demand (searches) and supply (listings) in Navi Mumbai declined by 7.9%
and 0.8% QoQ, respectively
The city’s average property rate remained stable since it recorded an increase of only 0.1%
Navi Mumbai’s residential real estate market is expected to grow with further development of
its road, rail, and airport infrastructure
Homebuyers are anticipating new launches by reputed developers active in the region
Except for a few high-end localities such as Palm Beach Road, Navi Mumbai’s real estate market
is primarily driven by affordable property options
Panvel, Kharghar and Airoli remain the most preferred residential destination
2 BHK units continue dominance in Navi Mumbai followed by 1 BHKs
Noida & Greater Noida
With improvement in new launch activity, residential supply (listings) in Noida-Greater Noida
observed growth of 6.7% QoQ in Q4 2022
Residential demand (searches) witnessed a QoQ decline of 2.5%, which indicates restrained
buyer sentiments
Steady exhaustion of unsold inventory of completed or near-completion homes has pushed
home buyers to look for under-construction properties
The average property rate witnessed a QoQ uptick of 3.9% in Q4 2022 compared to a 1.9% rise
in Q3 2022
Demand and supply were highest in Noida Extension and Sectors 74-79
Nearly 56% of consumer searches were directed towards properties priced <INR 5,000 psf,
indicating that the market is driven by affordability
Pune
The long festive season at the end of the year bode well for Pune’s residential market
Demand and supply for residential properties grew by 3.2% QoQ and 4.2% QoQ, respectively
At the same time, the city’s average rate increased by 1.5% QoQ
Moreover, proposals of several town planning schemes and infrastructural projects such as the
Intermediate Ring Road, High-Capacity Mass Transit Route (HCMTR) and Pune Metropolitan
Region (PMR) Ring Road are driving the rates up
Airport Road, Baner and Wakad continue their dominance in Q4 2022
Homebuyers prefer affordable properties with compact units
Thane
Demand (searches) for residential properties in the city registered a growth of 2.8%
QoQ, the supply surged by 11.1% QoQ. The average rate for the city increased by 0.8% QoQ
Key infrastructure developments to boost transportation and connectivity such as the Central
Railway Corridor between Thane and Diva, the proposed Mumbai-Ahmedabad High Speed
Railway, Personal Rapid Transport System (PRTS) continue to augment demand and supply
Ghodbunder Road and Western Thane remain the most preferred micro-market
2 BHKs and units costing <INR 9,000 psf gained traction in Q4 2022
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