From April to June 2024, the prices of under-construction properties in India’s top 13 cities increased 15.2% quarter-on-quarter, according to the recently published PropIndex Report by Magicbricks. These cities include Ahmedabad, Bengaluru, Chennai, Delhi, Gr. Noida, Gurugram, Hyderabad, Mumbai, Navi Mumbai, Noida, Pune, and Thane.

Price Surge & Market Dynamics

According to the report, this price surge, the highest in last 24 months, reflects dynamic changes in demand and supply in the residential real estate market. From April to June 2024, the supply of under-construction properties increased by 11.72% QoQ, marking the highest growth rate over the past two years. This surge in supply has resulted in prices of under-construction property surpassing those of ready-to-move properties in key cities like Gurugram, Mumbai, Noida, and Thane.

“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,” commented Abhishek Bhadra, head of research at Magicbricks.

Increase in Demand and Supply

Based on the preferences of over 20 million customers on Magicbricks platform, the report observed a 4.6% QoQ increase in total residential demand across the top 13 cities during this period. Northern cities like Gurugram, Delhi, and Noida saw the highest increases of 19.6%, 17%, and 16.4% respectively.

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. Bhadra added, “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.”

Positive Signals on the Supply Side

Moreover, there have been positive signals on the supply side, with a growth of 3.5% QoQ, particularly noteworthy in Tanah (15% QoQ), Gr. Noida (13.8% QoQ) and Nodia (7.3% QoQ). Despite the increase in supply, demand still outpaced available inventory, leading to further increases in residential prices.

Price Trends Across Cities

Across the top 13 cities, residential prices increased by 4% QoQ, with Noida (7% QoQ), Gurugram (6.8% QoQ), and Mumbai (6.5% QoQ) experiencing the highest increases. These cities remained hotspots for real estate development due to robust infrastructure growth and stable economic activity.

In summary, India’s real estate market showed robust performance in Q2 2024, with surges in under-construction property prices and supply, reflecting a promising market. Despite challenges posed by high interest rates, residential demand remains strong. And supply growth is also laying the foundation for a balanced market.