Ahead of the festive season, residential real estate has seen capital appreciation amidst demand surge.
According to a recent FY 25 Q2 PropIndex Report of Magicbricks, residential demand (searches) increased 12.3 percent quarter on quarter amidst 8.3 percent increase in residential prices.
Drawing on preferences from over 20 million customers on the Magicbricks platform, the report details that cities such as Noida with 16.9% QoQ increase, Gurugram with 15.5% QoQ increase, and Greater Noida with 15.1% QoQ increase saw the highest increases in residential prices during this period.
The research report further mentions that the average residential rate in Noida reached INR 11,625 psf as compared to INR 9,945 psf in the previous quarter. Average property rates in Gurugram reached INR 14,650 psf, and in Greater Noida, it increased to INR 7,752 psf between July and September 2024.
Commenting on the trends, Abhishek Bhadra, Head of Research at Magicbricks, says, “The residential real estate market is witnessing strong interest for both primary homeownership and investment. Demand is increasing at its highest pace in the past two years, with satellite cities around major urban centers such as Delhi and Mumbai attracting significant attention. Possibly there is also a fear of missing out (FOMO) among investors, which continues to drive market activity. However, as more supply enters the market, residential prices are expected to continue rising in the short term, though at a more moderate pace.”
The report further observed that growing interest in under-construction (UC) properties has resulted in a capital appreciation of 11 percent QoQ across the tracked cities, with significant growth seen in Thane (19.5 percent QoQ), Gurugram (17.3 percent QoQ) and Noida (14.5 percent QoQ). Additionally, the report indicated that demand for 3BHK units continues to dominate, accounting for 50% or more of total demand in most cities, except for Chennai, Navi Mumbai, and Thane, where 2BHK units remain the preferred choice.
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