Under-Construction Residential Property Prices on the Rise

Amidst supply of under-construction residential properties gaining growth in top 13 cities, the capital prices of homes are seeing substantial surge.

According to Magicbricks April-June 2024 PropIndex Report, residential supply witnessed the highest growth rate in the last 24 months, driven by the increasing availability of under-construction properties. .

The supply of under-construction properties has increased by 11.7 percent QoQ, while prices have risen by 15.2 percent between April-June 2024. This surge has resulted in prices of under-construction properties surpassing those of ready-to-move properties in several cities such as Gurugram, Mumbai, Noida and Thane.

Explaining the trends, Abhishek Bhadra, Head of Research, Magicbricks shared “As we navigate through 2024, the Indian real estate market has entered its third year of a robust bull run. With a projected steady increase in supply and a more measured pace of demand growth, we expect the market to progress towards an equilibrium. Furthermore, continued customer confidence in under-construction properties is suggesting a promising outlook for the residential real estate market in the long run.”

Further, based on the preferences of over 2 crore customers on Magicbricks platform, the report highlighted a continued uptick in aggregate residential demand across the top 13 cities during this period, registering a robust growth of 4.6 percent QoQ. Northern cities of Gurugram (19.6 percent  QoQ), Delhi (17percent  QoQ), and Noida (16.4 percent QoQ) experienced the highest increase.

“Despite higher interest rates, residential demand remains strong, buoyed by the Reserve Bank of India (RBI) keeping the Repo Rate unchanged for the eighth consecutive time. Should key economic indicators improve and inflation fall within a comfortable range, the RBI may consider reducing the Repo Rate, potentially further stimulating demand and benefiting end-users seeking affordable housing.” shared Abhishek Bhadra, Head of Research, Magicbricks

Moreover, after a period of relatively subdued supply, there has been a promising growth of 3.5 percent  QoQ, especially in Thane (15 percent  QoQ), Greater Noida (13.8 percent QoQ), and Noida (7.3 percent  QoQ). With demand still outpacing supply, the report noted that residential prices continued to rise, increasing by 4 percent  QoQ, with Noida (7 percent  QoQ), Gurugram (6.8 percent  QoQ), and Mumbai (6.5 percent QoQ) experiencing the highest increases.