NEW DELHI: Residential property searches increased by 16.9% quarter-on-quarter and 27.7% year-on-year while property listings rose by 2.9% quarter-on-quarter and 16.2% year-on-year in Q2, 2022, according to PropIndex report by Magicbricks.
Delhi (47.2%), Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%), and Bengaluru (18.8%) witnessed the highest quarter-on-quarter growth in residential searches while Delhi (10.8%), Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%) exhibited maximum quarter-on-quarter growth in listings in Q2, 2022, according to the report.
“The rise in residential demand across 13 India cities is reflective of economic recovery and income stabilisation. This is also fuelled by families returning to metros as offices and educational institutions reopen. While growing inflation, disruption of the global supply chain and increase in input cost of materials & mortgage rates are pushing up the prices, overall we are seeing buyer’s confidence and expect India’s residential market to continue growing over the next few quarters as well,” said Sudhir Pai, CEO of the company.
Prices of ready-to-move properties increased 2.3% quarter-on-quarter and 6.4% year-on-year in the said quarter. Greater Noida, Thane, Delhi, and Ahmedabad witnessed the highest quarter-on-quarter rate rise of 4%, 3.7%, 2.8%, and 2.6% respectively
On the other hand, prices of under-construction properties increased 2.7% quarter-on-quarter and 13.3% year-on-year nationally in Q2 2022. Prices in Noida, Hyderabad, Gurugram and Greater Noida increased 7.3%, 5%, 4.4%, and 3.4% quarter-on-quarter respectively.
1. Bengaluru’s residential demand observed a substantial growth with an increase of 18.8% quarter-on-quarter while the supply observed a growth of 6.7% quarter-on-quarter. 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 has been driven by an increasing demand near the coastal areas due to the presence of IT corridors and employment hubs. The demand grew 13.0% quarter-on-quarter while the supply grew 5.1% quarter-on-quarter with an increase of 1.6% quarter-on-quarter in the average property rates. Homebuyers in the city seem to have a strong preference for mid-segment and premium properties over affordable housing.
3. Delhi’s residential demand grew nearly 1.5 times with an increase of 47.2% quarter-on-quarter with a preference for mid-segment localities while the supply increased to 10.8% quarter-on-quarter. Property prices also witnessed a quarter-on-quarter increase of 2.5%. The residential market was dominated by 2BHK and 3BHK, which constituted a total of 82% of the demand share. In Noida and Greater Noida, the aggregate demand for residential markets witnessed a 19.3% quarter-on-quarter growth, whereas supply declined by 1.6% quarter-on-quarter and average prices increased by 3.1% quarter-on-quarter.
4. Ahmedabad’s residential market demand increased to 21.4% quarter-on-quarter while supply increased by 4.7% quarter-on-quarter; average prices increased 1.6% quarter-on-quarter. The 3BHK units continue to hold a majority share in the market with demand and supply of 45% and 46% respectively; decline in the demand for premium properties to 12% in Q2, 2022.
5. Kolkata’s residential market was driven by demand for affordable properties. The demand grew 21.2% quarter-on-quarter while the supply grew 5.1% quarter-on-quarter. The average property rates also increased 1.7% quarter-on-quarter; 2 and 3 BHK configurations accounted for 87% of the total demand as well as supply.
6. Demand in Mumbai‘s residential market increased 16.5% quarter-on-quarter owing to an increase in the demand in the western suburbs while supply increased by 4.5% quarter-on-quarter; average prices increased 1.2% quarter-on-quarter. The demand and supply for 2BHK configuration constituted 43% and 44% respectively in Q2, 2022.
7. Pune displayed a sharp increase in demand (from 3.9% in Q1, 2022 to 8.1% in Q2, 2022) and the average prices (from 0.5% in the previous quarter to 1.3% in Q2, 2022). Supply showed a reverse trend (From 2.2% to -2.0% in the current quarter).
8. In Hyderabad, the residential demand was largely stable (0.2% quarter-on-quarter growth), while the average rate increased by nearly 3%.