The Business Bytes
TBB BUREAU
NEW DELHI, MAR 26, 2024
In 2023, as residential prices soared, a noticeable trend emerged, favoring under-construction properties for investment and home ownership, according to the latest PropIndex report by Magicbricks, India’s leading real estate platform.
The report indicates a significant 7.8% quarter-on-quarter (QoQ) increase in demand for under-construction properties between January and March 2024. Correspondingly, prices experienced a robust uptick, growing 1.7% QoQ and a substantial 30.6% year-on-year (YoY). This momentum follows a previous increase of 6.32% QoQ recorded between October and December 2023, suggesting a sustained positive trend in the market.
Cities such as Noida (7.1% QoQ), Greater Noida (6.1% QoQ), Bengaluru, and Mumbai (5.7% QoQ each) witnessed the most substantial price increments in under-construction properties.
Abhishek Bhadra, Head of Research at Magicbricks, explained the trends, stating, “Historically, homebuyers have often favored completed projects over new developments. However, against the backdrop of increasing residential prices in 2023, there emerged a discernible shift in preference towards relatively more affordable under-construction properties. Consequently, prices of under-construction properties are on the rise as well. In response to this evolving demand, we have observed that developers are swiftly expediting the completion of under-construction projects and launching new ones.”
Furthermore, the report highlighted a notable trend towards 2BHK units, likely influenced by increasing residential prices across various cities. According to Magicbricks, the demand share of 2BHK units increased from 32% (between October and December 2023) to 42% (between January and March 2024). This trend was particularly pronounced in cities such as Bengaluru, Noida, and Navi Mumbai, where demand for 2BHKs surged considerably during these respective periods.
“While we anticipate residential demand to continue increasing, albeit at a slower pace, there are promising signs indicating an increase in residential supply in the upcoming quarters. Consequently, we expect prices to stabilize, showcasing the market’s resilience in the face of evolving dynamics,” concluded Abhishek Bhadra.
