In 2023, residential prices increased consistently, making relatively affordable under-construction properties more attractive for investment and home ownership, reveals the latest PropIndex report by Magicbricks, a real estate platform.
Cities such as Noida (7.1% QoQ), Greater Noida (6.1% QoQ), Bengaluru and Mumbai (5.7% QoQ each) witnessed the most substantial price increments in under-construction properties.
Explaining the trends, Abhishek Bhadra, Head of Research, at Magicbricks said, “Historically, homebuyers have often favoured completed projects over new developments. But against the backdrop of increasing residential prices in 2023, there emerged a discernible shift in preference towards relatively more affordable under-construction properties.“
“Consequently, prices of under-construction properties are on the rise as well. In response to this evolving demand, we have observed that developers are swiftly expediting the completion of under-construction projects and launching new ones,“ he further added.
According to the release, “The report underscores a notable surge in demand for under-construction properties, increasing 7.8% QoQ between January and March 2024. As a result, prices experienced a corresponding uptick, growing 1.7% QoQ and a significant 30.6% YoY. This momentum follows a previous increase of 6.32% QoQ recorded between October and December 2023, indicating a sustained positive trend in the market.”
Furthermore, the report shed light on a notable trend towards 2BHK units, also likely influenced by the increasing residential prices across various cities. According to Magicbricks, the demand share of 2BHK units increased from 32% (between October and December 2023) to 42% (between January and March 2024).
This trend was particularly pronounced in cities such as Bengaluru (rising from 29% to 45%), Noida (increasing from 11% to 33%), and Navi Mumbai (from 18% to 54%) where demand for 2BHKs grew considerably during these respective periods.
