Housing demand rises 4.6% QoQ in Q1, 2022; supply remains stable: Report

The residential housing industry showed robust growth in January-March 2022 as demand rose 4.6 per cent quarter-on-quarter (QoQ) across 13 Indian cities, according to the Magicbricks PropIndex Report.

Recovering from the coronavirus-induced slowdown, the first quarter saw Mumbai (15.2 per cent), Gurugram (9.6 per cent), Noida (8.2 per cent) and Delhi (5.6 per cent) witnessing the highest growth in demand while Greater Noida (6.0 per cent), Mumbai (3.8 per cent), Ahmedabad (3.2 per cent), and Chennai (2.9 per cent) exhibited maximum growth in supply. 

The prices of ready-to-move properties increased 1.7 per cent QoQ and 5.8 per cent year-on-year, with Thane, Greater Noida, Kolkata, Ahmedabad, and Bengaluru seeing maximum QoQ price increases.

The report said Delhi's residential market was dominated by 3BHK and above configurations that constituted 64 per cent of the demand, whereas, in Noida and Greater Noida, the aggregate demand for residential markets witnessed a 6.8 per cent QoQ growth.

The data showed that the demand in Mumbai increased with new residential launches increasing the supply by 3.8 per cent QoQ.

“Increasing project completions, attractive offers from developers, supportive policies, and improving employment opportunities have boosted buyer-confidence in the real estate industry," said Sudhir Pai, CEO, Magicbricks, adding that in each of the cities mapped, the peripheral areas continue to be hotspots of demand driven by infrastructure development.

The report has predicted an onward trajectory for 2022 due to external stimuli such as digitisation of land records, increased allocation of Rs 48,000 crore under PM Awas Yojna and PM Gati Shakti, which are expected to further strengthen infrastructure and boost investments in the real estate sector.