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India Residential Demand Moderates Amidst Rising Prices: Magicbricks
Real Estate

India Residential Demand Moderates Amidst Rising Prices: Magicbricks

Magicbricks’ latest PropIndex Report for Q1 2025 (January-March 2025) indicates signs of moderation in residential demand across 13 key metros, amidst increasing property prices. The report reveals that residential demand increased marginally by 0.6% QoQ, while average prices surged 2.8% QoQ and 21.7% YoY, reaching an average INR 12,829 per sq. ft.

This sustained price increase has led to a cautious approach from homebuyers in these markets. Some of the major cities have experienced a contraction in residential demand in the past three months, including Delhi (-11.9% QoQ), Greater Noida (-10.1% QoQ), Gurugram (-6.1% QoQ), Kolkata (-4.6% QoQ), and Noida (-12.5% QoQ).

However, Hyderabad (7.5% QoQ), Bengaluru (2.7% QoQ), and Mumbai (2.3% QoQ) have bucked the trend, witnessing moderate demand growth. These cities continue to thrive as employment hubs, attracting professionals who prioritise proximity to workplaces and urban amenities, sustaining the momentum in their residential sectors.

The report also highlights a surge in residential listings, which could contribute to price stabilisation in the long run. 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 also responding to the evolving market landscape, as the supply of under-construction properties has increased 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.

As the Indian residential market continues to adjust to evolving economic factors and buyer sentiment, the report underscores the importance of monitoring supply trends, affordability indices, and market demand to make informed real estate decisions.

Magicbricks’ latest PropIndex Report for Q1 2025 (January-March 2025) indicates signs of moderation in residential demand across 13 key metros, amidst increasing property prices. The report reveals that residential demand increased marginally by 0.6% QoQ, while average prices surged 2.8% QoQ and 21.7% YoY, reaching an average INR 12,829 per sq. ft. This sustained price increase has led to a cautious approach from homebuyers in these markets. Some of the major cities have experienced a contraction in residential demand in the past three months, including Delhi (-11.9% QoQ), Greater Noida (-10.1% QoQ), Gurugram (-6.1% QoQ), Kolkata (-4.6% QoQ), and Noida (-12.5% QoQ). However, Hyderabad (7.5% QoQ), Bengaluru (2.7% QoQ), and Mumbai (2.3% QoQ) have bucked the trend, witnessing moderate demand growth. These cities continue to thrive as employment hubs, attracting professionals who prioritise proximity to workplaces and urban amenities, sustaining the momentum in their residential sectors. The report also highlights a surge in residential listings, which could contribute to price stabilisation in the long run. 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 also responding to the evolving market landscape, as the supply of under-construction properties has increased 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. As the Indian residential market continues to adjust to evolving economic factors and buyer sentiment, the report underscores the importance of monitoring supply trends, affordability indices, and market demand to make informed real estate decisions.

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