Residential Property Prices Surge in Q3 2023: Report
In a significant uptick for the Indian real estate sector, residential property prices in the country recorded a robust quarter-on-quarter (QoQ) increase of 5.4 per cent in the third quarter of 2023. This surge was primarily fueled by an 8.4 per cent QoQ surge in demand (searches) and a 7.2 per cent QoQ drop in supply (searches), according to the latest MagicBricks PropIndex report.
The report, which delves into the intricacies of the Indian property market, also revealed that ready-to-move properties witnessed a 4.4 per cent QoQ price increase, while under-construction properties experienced an 8.2 per cent QoQ surge.
Continuing its growth trajectory, the pan India residential property market experienced a substantial upswing of 5.4 per cent in the third quarter of 2023, as aggregate demand (searches) surged by 8.4 per cent, while supply (listings) declined by 7.2 per cent, as observed in the MagicBricks PropIndex Report for Q3, 2023 (covering July to September 2023).
Examining trends across 13 prominent Indian cities, based on the preferences of over 2 crore customers, the MagicBricks’ PropIndex Report highlighted substantial increases in search volumes for Greater Noida (38.9 per cent), Noida (20.4 per cent), Kolkata (13.6 per cent), and Bengaluru (13.5 per cent) in the third quarter. This suggests a continued interest in residential properties within these cities.
Sudhir Pai, CEO of MagicBricks, commented on these trends, stating, “While the growing residential demand underscores the strong sentiment towards real estate in India, the reduction in supply can be attributed to various factors, including a focus on completing under-construction projects. However, when reflecting on the impact of macro tailwinds, including the recently concluded G20 summit and the approaching festive season, it is evident that a wave of optimism is building. This optimism is poised to propel the real estate sector forward in the coming months. We anticipate that this upward trajectory will encourage potential investors who were previously hesitant.”
Highlights from the Q3 2023 MagicBricks’ PropIndex Report include a consistent preference for spacious units, like 3BHK and larger apartments, which constituted 52 per cent of the total demand in key cities, marking a 1 per cent increase from the previous quarter. Developers are adjusting to changing demand patterns by increasing the availability of 3 BHK and larger apartments, while 1 BHK and 2 BHK configurations decreased compared to the last quarter. Notably, Greater Noida and Gurugram emerged as leaders in terms of capital appreciation, witnessing substantial year-on-year property price increases of 27.2 per cent and 33.4 per cent, respectively. This indicates a positive growth trajectory for the Indian real estate market driven by strong demand, promising a favorable outlook for the sector in the coming months.
