Pune shows surge in demand in residential property market – Punekar News
New Delhi/Noida, July 4, 2022: India’s residential real estate market showed strength in the second quarter of 2022, with pan-India residential demand (searches) up 16.9% from the quarter and 27, 7% year-over-year and supply (registrations) 2.9% quarter-on-quarter and 16.2% year-on-year, according to Magicbricks’ latest PropIndex report for Q2 2022. Growth reflects a promising return after the pandemic-induced slowdown and overall economic recovery across all sectors. Mapping trends in 13 cities across the country, the report highlights that Delhi (47.2%), Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%) and Bengaluru (18.8 %) experienced the strongest residential QoQ growth. while Delhi (10.8%), Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%) showed maximum supply growth QoQ.
“Rising residential demand in 13 Indian cities reflects economic recovery and stabilization of incomes. This is also fueled by the return of families to the subways as offices and educational institutions reopen. As rising inflation, global supply chain disruption and rising material costs and mortgage rates push prices higher, overall we are seeing buyer confidence and expecting that the Indian residential market also continues to grow in the coming quarters. shared Sudhir Pai, CEO, Magicbricks.
Regardless of the headwinds created by the multiple waves of Covid-19, Magicbricks Research predicts a steady growth curve for India’s residential sector throughout 2022.
Market Specific Takeaways from Magicbricks Propindex Report Q2, 2022:
1. Bangalore residential demand witnessed a substantial growth with an increase of 18.8% QoQ while supply witnessed a growth of 6.7% QoQ. There was a continued preference for larger homes, with 3BHK constituting 49% of total demand and 43% of total supply.
2. Chennai’s residential market has been boosted by growing demand near coastal areas due to the presence of IT corridors and employment hubs. Demand increased by 13.0% QoQ while supply increased by 5.1% QoQ with a 1.6% QoQ increase in average property prices. Home buyers in the city seem to have a strong preference for mid-range and high-end properties over affordable housing.
3. Residential demand in Delhi increased almost 1.5 times with an increase of 47.2% QoQ with a preference for mid-segment locations while supply increased to 10.8% QoQ. House prices also saw a QoQ increase of 2.5%. The residential market was dominated by 2BHK and 3BHK, which together accounted for 82% of the demand share. In Noida and Greater Noida, overall demand for residential markets grew by 19.3% QoQ, while supply decreased by 1.6% QoQ and average prices increased by 3.1% QoQ.
4. Residential market demand in Ahmedabad increased to 21.4% QoQ while supply increased by 4.7% QoQ; average prices rose 1.6% quarter-on-quarter. 3BHK units continue to hold a majority share of the market with demand and supply at 45% and 46% respectively; decline in demand for high-end goods to 12% in Q2 2022.
5. Kolkata’s residential market has been boosted by the demand for affordable properties. Demand increased by 21.2% QoQ while supply increased by 5.1% QoQ. Average real estate rates also increased by 1.7% Q/Q; The 2 and 3 BHK configurations accounted for 87% of total demand as well as supply.
6. Demand in the Mumbai residential market increased by 16.5% QoQ due to an increase in demand in the western suburbs while supply increased by 4.5% QoQ; average prices rose 1.2% quarter-on-quarter. The demand and supply for the 2BHK configuration constituted 43% and 44% respectively in the second quarter of 2022.
7. Pune showed strong increase in demand (from 3.9% in Q1 2022 to 8.1% in Q2 2022) and average prices (from 0.5% in previous quarter to 1.3% in Q2 2022 ). Supply showed an opposite trend (from 2.2% to -2.0% in the current quarter).
8. In Hyderabad, residential supply continued to decline even in the second quarter of 2022 in the face of regulatory developments. It is encouraging to see that the state government has introduced measures to monitor abusive practices in the sector. Overall, residential demand remained broadly stable (0.2% Q/Q growth), while the average tariff increased by nearly 3%.
Magicbricks PropIndex Report Highlights Q2, 2022
– Pan-India demand grew by 16.9% QoQ and 27.7% YoY. Delhi (47.2%), Ahmedabad (21.4%), Kolkata (21.2%), Noida (20.6%) and Bangalore (18.8%) recorded the highest QoQ growth in demand
– Cumulative supply increased by 2.9% quarter-on-quarter and 16.2% year-on-year. Delhi (10.8%), Bengaluru (6.7%), Gurugram (6.6%), Chennai (5.1%) and Kolkata (5.1%) recorded maximum QoQ supply growth
– Pan-India prices rose 2.4% quarter-on-quarter and 8.0% year-on-year, reflecting the resilience of housing markets relative to other real estate assets
– Prices for properties ready to move in have increased by 2.3% in one quarter and 6.4% in one year. Greater Noida, Thane, Delhi and Ahmedabad saw the highest increase in QoQ rate of 4.0%, 3.7%, 2.8% and 2.6% respectively
– Prices for properties under construction rose 2.7% quarter-on-quarter and 13.3% year-on-year nationally. Prices in Noida, Hyderabad, Gurugram and Gr. Noida increased by 7.3%, 5.0%, 4.4% and 3.4% QoQ respectively