India’s Residential Demand Increased 14.2%, Supply Grew 1.9% YoY Reveals “Magicbricks PropIndex” Report (Jan-March 2023)

* After recording a marginal decline of 2.5% last quarter, residential demand increased 3.2% QoQ, showing market resilience  

* With demand and supply mismatch, pan-India average rate increased 13.9% YoY  

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.  

Elaborating on the trends, 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.” 

City-wise Highlights 

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%