Under-construction property prices surge by 15.2 pc in top 13 cities: Magicbricks PropIndex Report

New Delhi [India], June 24 : The Magicbricks PropIndex Report for April-June 2024 has unveiled 15.2 per cent quarter-on-quarter (QoQ) increase in the prices of under-construction properties across India's top 13 cities which are Ahmedabad, Bengaluru, Chennai, Delhi, Gr. Noida, Gurugram, Hyderabad, Mumbai, Navi Mumbai, Noida, Pune and Thane.
According to the report, this price surge, the highest in last 24 months, reflects dynamic changes in demand and supply within the residential real estate market.
The report highlights that between April and June 2024, the supply of under-construction properties witnessed an 11.72 per cent QoQ increase, marking the highest growth rate in residential supply over the past 24 months.
This surge in availability has led to under-construction property prices surpassing those of ready-to-move properties in key cities such as Gurugram, Mumbai, Noida, and Thane.
Abhishek Bhadra, Head of Research at Magicbricks, commented on the trends, stating, "As we navigate through 2024, the Indian real estate market has entered its third year of a robust bull run. With a projected steady increase in supply and a more measured pace of demand growth, we expect the market to progress towards an equilibrium."
He added, "Furthermore, continued customer confidence in under-construction properties is suggesting a promising outlook for the residential real estate market in the long run."
Based on the preferences of over 20 million customers on the Magicbricks platform, the report observed a consistent uptick in aggregate residential demand across the top 13 cities, registering a robust growth of 4.6 per cent QoQ.
The northern cities of Gurugram, Delhi, and Noida experienced the highest increases in demand, with Gurugram leading at 19.6 per cent QoQ, followed by Delhi at 17 per cent QoQ, and Noida at 16.4 per cent QoQ.
Despite prevailing high interest rates, residential demand has remained resilient, buoyed by the Reserve Bank of India's (RBI) decision to keep the Repo Rate unchanged for the eighth consecutive time.
"Despite higher interest rates, residential demand remains strong, buoyed by the Reserve Bank of India (RBI) keeping the Repo Rate unchanged for the eighth consecutive time. Should key economic indicators improve and inflation fall within a comfortable range, the RBI may consider reducing the Repo Rate, potentially further stimulating demand and benefiting end-users seeking affordable housing", added Bhadra.
The supply side also showed promising growth, with a notable increase of 3.5 per cent QoQ, especially in Thane, which saw a 15 per cent QoQ rise, Greater Noida at 13.8 per cent QoQ, and Noida at 7.3 per cent QoQ.
This increased supply is a positive indicator, although demand continues to outpace the available inventory, causing residential prices to rise further.
Across the 13 cities, residential prices increased by an average of 4 per cent QoQ. Noida witnessed the highest price hike at 7 per cent QoQ, followed closely by Gurugram at 6.8 per cent QoQ and Mumbai at 6.5 per cent QoQ.
These cities continue to be hotspots for real estate development, driven by strong infrastructure growth and robust economic activities.
In Ahmedabad, there was a moderate demand increase of 3.5 per cent QoQ and a significant supply rise of 6.3 per cent QoQ, but only a slight price uptick of 0.2 per cent QoQ.
Bengaluru, despite an 8 per cent QoQ drop in demand, saw supply increase by 4.8 per cent QoQ and prices rise by 3 per cent QoQ, indicating a complex market scenario.
Chennai noted an 11.9 per cent QoQ increase in demand, with a modest supply rise of 2.5 per cent QoQ, and a price increase of 2.9 per cent QoQ.
Delhi experienced a 17 per cent QoQ surge in demand, despite a decline in supply by 3.9 per cent QoQ, leading to a price increase of 4.3 per cent QoQ.
Greater Noida showed robust demand growth of 15.5 per cent QoQ and a supply increase of 13.8 per cent QoQ, with prices rising by 5.9 per cent QoQ.
Gurugram experienced the highest demand increase at 19.6 per cent QoQ, with supply rising by 5.3 per cent QoQ and prices climbing by 6.8 per cent QoQ.
Hyderabad saw a slight demand increase of 1.5 per cent QoQ, with supply and prices rising by 5.3 per cent QoQ and 2.3 per cent QoQ, respectively.
Kolkata witnessed a 9.8 per cent QoQ increase in demand, despite a slight supply decline of 0.9 per cent QoQ, and a price rise of 3.5 per cent QoQ.
Mumbai recorded a 6.7 per cent QoQ demand increase, with supply up by 5.3 per cent QoQ and prices increasing by 6.5 per cent QoQ.
Navi Mumbai noted a slight demand rise of 1.4 per cent QoQ, despite a 4.2 per cent QoQ supply decline and a 1.7 per cent QoQ increase in prices.
Noida continued to see strong demand growth of 16.4 per cent QoQ, with a 7.3 per cent QoQ supply increase and a 7 per cent QoQ price hike.
Pune experienced a minimal demand increase of 3.2 per cent QoQ and a negligible supply decrease of 0.1 per cent QoQ, with prices rising by 2.1 per cent QoQ. Thane exhibited moderate demand growth of 2.1 per cent QoQ, with supply surging by 15 per cent QoQ and a slight price increase of 0.7 per cent QoQ.