Property prices in 13 major cities of India experienced a remarkable 18.8 percent year-on-year (YoY) increase and a 3.97 percent quarter-on-quarter (QoQ) growth in the October-December 2023 period, as revealed by the latest Magicbricks PropIndex report. Noteworthy spikes were observed in cities like Gurugram, Greater Noida, Noida, and Hyderabad.
Despite a 2 percent YoY increase in demand (searches) for residential properties, a 16.9 percent QoQ decline was noted, primarily attributed to the rising property prices. The surveyed cities include Mumbai, Navi Mumbai, Delhi, Noida, Greater Noida, Gurugram, Hyderabad, Bengaluru, Chennai, Kolkata, Pune, Ahmedabad, and Thane.
Gurugram’s employment hubs witnessed the highest appreciation in property prices at 32.1 percent YoY, closely followed by Greater Noida (31 percent YoY), Noida (26.1 percent YoY), and Hyderabad (15.8 percent YoY) during the same period.
Abhishek Bhadra, head of research at Magicbricks, noted that 2023 was pivotal for the real estate sector, with a surge in residential demand driven by robust macroeconomic factors and positive customer sentiment. However, constraints in residential supply and rising home loan rates impacted prices, leading to a decline in demand for the quarter. Despite short-term challenges, Bhadra expressed optimism about a positive trajectory for residential demand in the medium to long term, anticipating a rebound in supply and moderation in prices.
The report highlighted the flourishing affordable housing market (rate below Rs 5,000 per square foot) in Ahmedabad (62 percent) and Kolkata (48 percent), while luxury properties dominated searches in Mumbai Metropolitan Region (90 percent), New Delhi (58 percent), and Gurugram (48 percent).
In northern cities like Delhi, Greater Noida, and Noida, demand leaned towards 3BHK and higher configuration units, while in southern cities like Bengaluru and Chennai, smaller units led the demand. Exceptions, such as Kolkata and cities in the Mumbai Metropolitan Region, showed a significant portion of demand for 1BHK units, according to the report.
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