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Online Search For Residential Properties Grow 28% YoY: Report

As per the Magicbricks PropIndex Report, the Indian residential real-estate market exhibited strength in April-June quarter of calendar year 2022. Online search for residential property on a pan India level increase rising by 16.9% QoQ and 27.7 per cent YoY and supply (listings) by 2.9 per cent QoQ and 16.2 per cent YoY

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The Indian residential real-estate market exhibited strength in Q2, 2022, with pan India residential demand (searches) rising by 16.9 per cent QoQ and 27.7 per cent YoY and supply (listings) by 2.9 per cent QoQ and 16.2 per cent YoY, as per Magicbricks’ latest PropIndex Report for Q2, 2022. The growth reflects a promising comeback from the pandemic-induced slowdown and the overall economic recovery across sectors. Mapping trends in 13 cities across the country, the report highlights that Delhi (47.2 per cent), Ahmedabad (21.4 per cent), Kolkata (21.2 per cent), Noida (20.6 per cent), and Bengaluru (18.8 per cent) witnessed the highest QoQ growth in residential demand while Delhi (10.8 per cent), Bengaluru (6.7 per cent), Gurugram (6.6 per cent), Chennai (5.1 per cent) and Kolkata (5.1 per cent) exhibited maximum QoQ growth in supply.

“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.” shared Sudhir Pai, CEO, Magicbricks.

Regardless of the headwinds created by the multiple waves of Covid-19, Magicbricks Research anticipates a stable growth curve for India's residential sector throughout 2022.

Market-specific takeaways:

Bengaluru’s residential demand observed a substantial growth with an increase of 18.8 per cent QoQ while the supply observed a growth of 6.7 per cent QoQ. There was a continued preference for bigger homes with 3BHK constituting 49 per cent of the total demand and 43 per cent of the total supply. 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 per cent QoQ while the supply grew 5.1 per cent QoQ with an increase of 1.6 per cent QoQ in the average property rates. Homebuyers in the city seem to have a strong preference for mid-segment and premium properties over affordable housing. Delhi's residential demand grew nearly 1.5 times with an increase of 47.2 per cent QoQ with a preference for mid-segment localities while the supply increased to 10.8 per cent QoQ. Property prices also witnessed a QoQ increase of 2.5 per cent. The residential market was dominated by 2BHK and 3BHK, which constituted a total of 82 per cent of the demand share. In Noida and Greater Noida, the aggregate demand for residential markets witnessed a 19.3 per cent QoQ growth, whereas supply declined by 1.6 per cent QoQ and average prices increased by 3.1 per cent QoQ.

Ahmedabad’s residential market demand increased to 21.4 per cent QoQ while supply increased by 4.7 per cent QoQ; average prices increased 1.6 per cent QoQ. The 3BHK units continue to hold a majority share in the market with demand and supply of 45 per cent and 46 per cent respectively; decline in the demand for premium properties to 12 per cent  in Q2, 2022. Kolkata’s residential market was driven by demand for affordable properties. The demand grew 21.2 per cent QoQ while the supply grew 5.1 per cent QoQ. The average property rates also increased 1.7 per cent QoQ; 2 and 3 BHK configurations accounted for 87 per cent of the total demand as well as supply. Demand in Mumbai's residential market increased 16.5 per cent QoQ owing to an increase in the demand in the western suburbs while supply increased by 4.5 per cent QoQ; average prices increased 1.2 per cent QoQ. The demand and supply for 2BHK configuration constituted 43 per cent and 44 per cent respectively in Q2, 2022.

Pune displayed a sharp increase in demand (from 3.9 per cent in Q1, 2022 to 8.1 per cent in Q2, 2022) and the average prices (from 0.5 per cent in the previous quarter to 1.3 per cent in Q2, 2022). Supply showed a reverse trend (From 2.2 per cent to -2.0 per cent in the current quarter). In Hyderabad, residential supply continued to decrease even in Q2 2022 in the face of regulatory changes. It is encouraging to see that the State Government has introduced measures to monitor malpractices in the sector. Overall, the residential demand was largely stable (0.2 per cent QoQ growth), while the average rate increased by nearly 3 per cent.

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