The Business Bytes
TBB BUREAU
NEW DELHI/NOIDA, MAR 30, 2023
Continuing on the path of resilience and overall growth, India’s residential demand increased 14.2 per cent and supply grew 1.9 per cent year-on-year (YoY), observed Magicbricks’ PropIndex Report for January-March 2023.
According to the report, after recording a marginal decline of 2.5 per cent last quarter, residential demand (searches) increased 3.2 per cent quarter-on-quarter (QoQ) led by Ahmedabad (21.4 per cent), Bengaluru (10.3 per cent) and Pune (7 per cent).
The report also observed that while the pan India residential supply increased 1.9 per cent YoY, it recorded a marginal decline of 0.9 per cent QoQ as new project launches slowed down, and the focus was on selling existing inventory. However, cities including Noida (20.8 per cent) and Greater Noida (17.6 per cent) demonstrated an increase in residential supply (QoQ). As a result of demand and supply mismatch, the average pan India property rate increased 13.9 per cent YoY and 2.3 per cent QoQ.
Elaborating on the trends, Magicbricks CEO Sudhir Pai said, “Several multilateral agencies have projected that the Indian economy will grow by 6-7 per cent 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.”
The report further observed that the pan-India average rates of ready-to-move-in properties increased 9.3 per cent YoY, and average prices of under-construction properties increased 15.3 percent YoY.
