Housing demand rises 19% in December quarter across India, avg property prices up 13.9%

The Indian residential market demonstrated resilience and overall growth in the year 2022. The aggregate residential demand, indicated by searches, increased 19% from year ago led by major cities such as Mumbai with 52.1% rise, Noida 35.8%, Gurgaon 34.5%, Delhi 14.8% and Bengaluru with 33% growth, showed the Magicbricks’ PropIndex report for the December quarter.

The average property rates increased 13.9% from a year ago and the cumulative supply, indicated by listing, grew 2.7%. The highest increase in average rates were witnessed in Noida 13.7%, Greater Noida 12.3%, Hyderabad 11.7% and Thane 8.1% from a year ago.

The pan-India average rates of ready-tomove-in properties increased 9%, and average prices of under-construction properties increased 15.3% from a year ago. “In 2022, residential demand, supply and prices recovered and the year bode well for both under-construction and ready-to-move-in houses,” said Sudhir Pai, CEO, Magicbricks. “Despite consecutive hikes in the repo rate and home loan rates in the past quarters, end-users remained keen on home buying, encouraging developers to accelerate new project launches while delivering their existing projects. Overall, we are optimistic that the residential demand will be largely sustained in 2023 as well.”

Mumbai with 13.4%, Bengaluru 8.4% and Thane with 4.1% rise saw the highest annual increase in residential supply.

It was also observed that 2- and 3-bedroom apartments were the most preferred across these 12 cities. While cities like Kolkata, Chennai, Hyderabad continue to see a surge in demand for affordable units, other big metro cities like Bengaluru, New Delhi and Mumbai are attracting demand for mid-segment residences. Magicbricks is part of Bennett, Coleman & Co Ltd, which publishes The Economic Times.