Delhi, 7th July 2023Magicbricks, one of the largest Indian real estate platforms, released its flagship PropIndex Report (April-June 2023), and observed that Delhi’s residential demand (active searches) increased 17.7% QoQ. The report also revealed that the average property rates in Delhi have grown by 11.7% since Oct-December 2021. With growing employment and business opportunities, Delhi has been attracting more workforce, which has led to increased demand for residential properties. At the same time, due to the limited availability of land for construction, most of the construction is restricted to the redevelopment of existing properties. As a result, supply has contracted and witnessed a dip of 5.7% QoQ.
Amongst the preferences exhibited by homebuyers, larger configurations, particularly 3BHK units, accounted for more than 50% of the city’s residential demand during this quarter. Affordability emerged as a key consideration, with 47% of homebuyers leaning toward properties evaluated below INR 10,000 per square foot.
Dwarka, Greater Kailash, and Uttam Nagar were observed as the most desirable neighborhoods in Delhi. Notably, Uttam Nagar witnessed a spectacular rise, rising from sixth position to top three preferred micro localities. These microlocalities are highly sought-after by homeowners because they provide appealing facilities, convenient connections, and a desirable quality of life.
Elaborating on the trends, Sudhir Pai, CEO of Magicbricks, said “Despite global macro-economic factors which have increased interest rates, the residential demand in India has shown robust growth, especially backed by the growing importance of home ownership and the sentiment of security it brings. However, we have also observed that there is a sizable disequilibrium between the budget thresholds of buyers and the residential prices in many micro markets. Hence, there is an urgent need to ramp up the supply to meet the growing demand, especially in the affordable and mid-segments.”
Based on the behavior and preferences of over 2 crore customers on the Magicbricks platform and over 15 lakh listings, PropIndex also observed that the residential demand across 13 Indian cities increased 7.8% YoY and 10.4% QoQ between April and June 2023.