Between April and June 2024, residential supply witnessed the highest growth rate in the last 24 months, driven by the increasing availability of under-construction properties, shared the recently published report by Magicbricks.
According to the report, the supply of under-construction properties has increased by 11.7% QoQ, while prices have risen by 15.2% between April-June 2024. This surge has resulted in prices of under-construction properties surpassing those of ready-to-move properties in several cities such as Gurugram, Mumbai, Noida and Thane.
Explaining the trends, Abhishek Bhadra, Head of Research, Magicbricks shared "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. Furthermore, continued customer confidence in under-construction properties is suggesting a promising outlook for the residential real estate market in the long run.”
Further, based on the preferences of over 2 crore customers on Magicbricks platform, the report highlighted a continued uptick in aggregate residential demand across the top 13 cities during this period, registering a robust growth of 4.6% QoQ. Northern cities of Gurugram (19.6% QoQ), Delhi (17% QoQ), and Noida (16.4% QoQ) experienced the highest increase.
“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.” shared Abhishek Bhadra, Head of Research, Magicbricks
Moreover, after a period of relatively subdued supply, there has been a promising growth of 3.5% QoQ, especially in Thane (15% QoQ), Greater Noida (13.8% QoQ), and Noida (7.3% QoQ). With demand still outpacing supply, the report noted that residential prices continued to rise, increasing by 4% QoQ, with Noida (7% QoQ), Gurugram (6.8% QoQ), and Mumbai (6.5% QoQ) experiencing the highest increases.
