“Residential Demand Increased” 7.8% YoY And 10.4% QoQ, Reports Magicbricks’ PropIndex (April – June 2023)

* Gurugram (28.9%), Bengaluru (19.7%), Greater Noida (18.1%) and Delhi (17.7%) witnessed the highest QoQ growth in residential demand 

* Pan India, average property rates increased 2.2% QoQ and 14.7% YoY 

* Residential supply declined by 7.4% QoQ and 8.3% YoY 

Magicbricks, India's leading real estate platform, released its flagship PropIndex Report for April-June 2023, observing that the residential demand across 13 Indian cities increased 7.8% YoY and 10.4% QoQ during the said period.  

Based on the behavior and preferences of over 2 crore customers on Magicbricks platform and over 15 lakh listings, PropIndex also observed that employment hubs Gurugram (28.9%), Bengaluru (19.7%), Greater Noida (18.1%) and Delhi (17.7%) were at the forefront of this growing residential demand. At the same time, the report also observed a decline of 7.4% QoQ and 8.3% YoY in residential supply, indicating a tightening of inventory. Owing to the supply-demand mismatch, the average property rates increased 14.7% YoY and 2.2% QoQ.  

Elaborating on the trends, Sudhir Pai, CEO of Magicbricks, said "Despite global macro-economic factors which have increased interest rates, the residential demand in India has shown robust growth, especially backed by the growing importance of home ownership and the sentiment of security it brings. However, we have also observed that there is a sizable mismatch between budget thresholds of buyers and the residential prices in many micro markets. Hence, there is an urgent need to ramp up the supply to meet the growing demand, especially in the affordable and mid-segments.” 

The report also observed that the average rates of Ready-to-move (RTM) properties increased 2.4% QoQ and 9.8% YoY, and average rates of Under-construction (UC) increased 1.9% QoQ and 16.3% YoY.   

According to Magicbricks Research, Greater Noida saw the highest increase in its average rate (32.4%), followed by Noida (28.7%), Hyderabad (23.3%) and Gurugram (23.1%). Among the major cities, Chennai (4.0%), Kolkata (8.0%) and Pune (10.1%) remained the most affordable during the last two years.