The Indian residential real estate market is experiencing a nuanced shift as escalating property prices begin to temper buyer enthusiasm. According to Magicbricks’ PropIndex Report for Q1 2025 (January-March), residential demand across 13 major metropolitan areas showed a modest increase of 0.6% quarter-on-quarter (QoQ). This tepid growth contrasts with a significant 2.8% QoQ and a striking 21.7% year-on-year (YoY) surge in average property prices, which have now reached ₹12,829 per square foot.
Regional Variations in Demand
Several key cities have witnessed a contraction in residential demand over the past quarter:
- Delhi: Experienced an 11.9% QoQ decline.
- Greater Noida: Saw a 10.1% QoQ drop.
- Gurugram: Recorded a 6.1% QoQ decrease.
- Kolkata: Faced a 4.6% QoQ reduction.
- Noida: Noted a significant 12.5% QoQ fall.
Conversely, some cities have bucked this trend, demonstrating moderate demand growth:
- Hyderabad: Achieved a 7.5% QoQ increase.
- Bengaluru: Noted a 2.7% QoQ rise.
- Mumbai: Experienced a 2.3% QoQ uptick.
These cities continue to thrive as employment hubs, attracting professionals who prioritize proximity to workplaces and urban amenities, thereby sustaining momentum in their residential sectors.
Supply Dynamics and Developer Confidence
The report also highlights a surge in residential listings, which could contribute to price stabilization in the long run. Notably, cities such as Greater Noida (9.7% QoQ), Pune (14.5% QoQ), and Navi Mumbai (34.5% QoQ) have recorded significant increases in residential supply over the past three months, offering homebuyers a broader range of options.
Developers are responding proactively to this evolving market landscape. The supply of under-construction properties has surged by 39.71% YoY and nearly 5% in just three months. Cities such as Gurugram (32.25% QoQ), Greater Noida (31.07% QoQ), and Bengaluru (18.46% QoQ) have emerged as hotspots for new residential developments, indicating strong confidence in long-term market growth.
Market Outlook
As the Indian residential market continues to adjust to evolving economic factors and buyer sentiment, monitoring supply trends, affordability indices, and market demand becomes crucial for making informed real estate decisions. The current landscape suggests a cautious optimism, with developers and buyers navigating the complexities of a market characterized by rising prices and moderated demand.
In conclusion, while the surge in property prices poses challenges for prospective buyers, the corresponding increase in supply and continued developer confidence indicate a market in transition, striving to balance affordability with growth.
