The Indian residential real estate market has experienced a significant surge in the June quarter of 2024, with notable increases in the supply and prices of under-construction properties.
According to the Magicbricks PropIndex Report, the supply of under-construction properties rose by an impressive 11.7% sequentially, marking the fastest pace of growth in the past two years. Concurrently, prices for these properties soared by 15.2%, surpassing those of ready-to-move-in homes in key locations such as Gurugram, Mumbai, Noida, and Thane.
Drivers of the Market Growth
Abhishek Bhadra, the head of research at Magicbricks, attributes this robust growth to sustained customer confidence in under-construction properties. As we navigate through 2024, the Indian property market is in its third year of a strong bull run. The projected steady increase in supply, coupled with a more measured pace of demand growth, suggests a market progressing toward equilibrium.
Regional Highlights: Northern Markets Lead the Surge
The report highlights a significant uptick in aggregate residential demand across the top 13 cities, with a sequential % growth rate of 4.6%. The northern markets, particularly Gurugram, Delhi, and Noida, have experienced the fastest increases in demand, with quarter-on-quarter growth rates of 19.6%, 17%, and 16.4%, respectively.
Moreover, supply expansion has also been notable in regions such as Thane, Greater Noida, and Noida, which saw sequential growth rates of 15%, 13.8%, and 7.3%, respectively. Despite the increase in supply, demand continues to outpace it, resulting in a continued rise in residential prices. Noida, Gurugram, and Mumbai have seen the highest price increases, with quarter-on-quarter growth rates of 7%, 6.8%, and 6.5%, respectively.
Market Dynamics and Future Outlook
The continued growth in the supply and demand for under-construction properties indicates a promising outlook for the residential real estate market in the long run. Customer preferences, as reflected by the activity of more than 20 million users on the Magicbricks platform, underscore the sustained interest in residential real estate investments.
As we move forward, the market is expected to maintain its momentum, with a steady increase in supply potentially leading to a more balanced market. However, with demand still outpacing supply, prices are likely to continue their upward trajectory, making it an opportune time for investors and homebuyers to consider under-construction properties.
Conclusion: A Thriving Market with Promising Prospects
In conclusion, the June quarter of 2024 has been marked by remarkable growth in the Indian residential real estate market, driven by the increasing supply and prices of under-construction properties. With sustained customer confidence and a projected steady increase in supply, the market is well-positioned for continued growth. Key regions such as Gurugram, Delhi, Noida, Thane, and Mumbai are leading the charge, reflecting a dynamic and thriving market landscape.