Demand for Housing Back at March Levels

Sings of demand recovery in residential real estate were visible in June with a pan-India price growth of 1.7% for the quarter ended June, after the second Covid wave disrupted economic activity severely in April and May, revealed the latest Magic bricks Prop Index.

Despite the slumps during April and May, the demand for housing in June rebounded to the March levels.

“Unlike the first wave, the recovery in demand for residential real estate has been faster in the second wave. The residential markets of Bengaluru, Chennai, Thane, Noida, Greater Noida, Kolkata and Delhi witnessed price corrections ranging from 1-2.3% during the quarter that also saw rising medical expenses and debt. This rise in price reflects the inherent strength of the housing sector even during these troubled times,” said Sudhir pal, CEO, Magic bricks.

According to him, the quarter also witnessed a rise in supply across pan-India by almost 8% due to new launches, with Hyderabad seeing a jump of 20%.

This recovery can be attributed to factors such as a consistent demand in the large-size properties and a higher flow of global private equity funds ensured by good, risk adjusted returns by the sector.

The intermittent lockdowns due to the second wave and the continuance of work-from-home (WFH) policies ensure a rise in demand for 3 bedroom apartments as home buyers are looking to upgrade for the need of an extra room to suit the requirement of home office.

This shift has led to rise in demand share of 3BHKs and higher configurations in Delhi-NCR, Hyderabad and Kolkata, reaching an all -time high of more than 65% of the overall demand share in all these markets. S-Magic Brick

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