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In the October-December 2023 period, the Indian real estate market witnessed a notable upswing, with property prices across 13 major cities surging by 18.8 percent year-on-year and 3.97 percent quarter-on-quarter, as per the latest Magicbricks PropIndex report. Gurugram, Greater Noida, Noida, and Hyderabad emerged as the frontrunners in experiencing the highest appreciation in property prices during this timeframe. While the demand for residential properties exhibited a 2 percent year-on-year increase, it witnessed a 16.9 percent quarter-on-quarter decline, primarily attributed to the escalating property prices.
The employment hubs of Gurugram were at the forefront of this surge, experiencing the highest appreciation in property prices at an impressive 32.1 percent year-on-year. Other notable cities following this trend included Greater Noida (31 percent year-on-year), Noida (26.1 percent year-on-year), and Hyderabad (15.8 percent year-on-year). Abhishek Bhadra, the Head of Research at Magicbricks, asserted that 2023 marked a pivotal period for the real estate sector, witnessing a remarkable surge in residential demand driven by robust macroeconomic factors and positive customer sentiment.
However, this surge was not without its challenges, as constrained residential supply and escalating home loan rates contributed to an inflationary impact on residential prices, subsequently resulting in a decline in demand during the quarter. Despite these short-term challenges, Bhadra expressed optimism about the residential real estate sector, foreseeing a positive trajectory in the medium to long term. He anticipates a rebound in supply and a moderation in residential prices over the coming periods.
The Magicbricks PropIndex report further delved into the dynamics of the affordable housing market, noting a flourishing trend in cities like Ahmedabad (62 percent) and Kolkata (48 percent). On the other end of the spectrum, luxury properties witnessed heightened interest in the Mumbai Metropolitan Region (90 percent), New Delhi (58 percent), and Gurugram (48 percent).
The report provided insights into regional preferences, highlighting that in northern cities such as Delhi, Greater Noida, and Noida, the demand skewed more towards larger configurations such as 3BHK and higher. In contrast, southern cities like Bengaluru and Chennai witnessed a greater preference for smaller units. Exceptions were noted, including Kolkata and cities in the Mumbai Metropolitan Region, where a significant portion of the demand was observed for 1BHK units.
In summary, while the real estate sector faced short-term challenges, the Magicbricks PropIndex report remains optimistic about its trajectory in the medium to long term. It anticipates a rebound in supply and a moderation in residential prices, signaling potential opportunities and resilience in the Indian real estate market.
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