In Q3 2022, the aggregate residential demand (searches) in the top 13 cities of the country jumped by 7.3% YoY, while the cumulative supply (listings) witnessed a growth of 6.0% YoY. At the same time, there was a QoQ decline of 2.9% and 3.3% in demand and supply, respectively, according to the Magicbricks PropIndex Report Q3, 2022.
The report highlights that Greater Noida (9.9%), Gurugram (3.7%), Bengaluru (3.7%) and Mumbai (1.9%) witnessed the highest QoQ growth in residential demand while Bengaluru (0.3%), Kolkata (0.9%), Navi Mumbai (1.3%) and Mumbai (2.1%) exhibited decline in residential supply QoQ.
The report further observes that the average property rates increased 2.0% QoQ and 9.1% YoY, displaying the buoyancy of the residential markets. The average rates of ready-to-move-in properties saw an upward movement of 1.5% QoQ and 8.0% YoY and prices in Noida, Greater Noida, Bengaluru and Hyderabad increased 3.3%, 2.9%, 2.0% and 2.0% QoQ, respectively. The average rates of under-construction properties increased 3.8% QoQ and 13.4% YoY. In this category, Navi Mumbai, Bengaluru, Gurugram and Chennai registered a rise of 5.4%, 5.3%, 5.2% and 4.5% QoQ, respectively.
Elaborating on the trends, Sudhir Pai, CEO, Magicbricks commented, “After uncertainty in the past few years, 2022 has ushered in relative stability and recovery for the residential sector. Home sales have been strong all year, and the upcoming festive season is likely to further spur the growth as it is considered an auspicious time to make real estate investments. To facilitate access to properties with lucrative offers and deals, we are excited to launch the 6th edition of our Dream Home Festival (DHF) from 1st October 2022 and are confident that this year will also mirror the success of previous editions.”
Market-specific takeaways from Magicbricks’ Propindex Report Q3, 2022:
1. Bengaluru’s residential demand grew 3.7% QoQ while the supply observed a slight decline of 0.3% QoQ, and property rates increased 2.7% QoQ. There was a continued preference for bigger homes with 3BHK constituting 49% of the total demand and 43% of the total supply.
2. Chennai’s residential market registered a slump with demand dropping 9.2% QoQ while the supply dipped 5.2% QoQ. The residential prices in the city increased 2.1% QoQ. Homebuyers in the city seem to have a strong preference for 2BHKs, which constitute 43% of the total demand and 50% of the total supply.
3. Delhi’s residential demand remained subdued with a decline of 12.8% QoQ while the supply reduced 4.4% QoQ. Property prices increased QoQ 1.2%. The residential market was dominated by 3BHKs with 49% demand and 47% supply share.
4. Demand in Mumbai’s residential market increased 1.9% QoQ while supply declined 2.1% QoQ; average prices increased 2.1% QoQ. The demand and supply for 2BHK configuration constituted 42% and 43% respectively in Q3, 2022.
5. In Noida and Greater Noida, the aggregate demand and supply for residential markets declined 2.0% QoQ and 11.2% QoQ (respectively) and average prices increased by 1.9% QoQ.
6. Demand in Gurugram grew 7.4% QoQ, whereas supply declined 3.8% QoQ and average prices increased 1.5% QoQ. Homebuyers displayed a preference for mid and premium segment properties.
7. Demand in Ahmedabad declined 1.5% QoQ while supply dropped 4.0% QoQ; average prices increased 1.1% QoQ. The 3BHK units continue to hold a majority share in the market with demand and supply of 44% and 45% respectively
8. Kolkata’s residential market was driven by demand for affordable properties with 2 and 3 BHK configurations accounting for 86% of the total demand and 87% of the total supply. Overall, the residential demand in the city declined 2.2% QoQ while the supply reduced by 0.9% QoQ. The average property rates increased 1.8% QoQ.