Residential prices surge 11.2% YoY in Bengaluru: Magicbricks PropIndex (Oct-Dec 2023)

Residential demand jumped 12.0% YoY in the same quarter

Bangalore, 24th January 2024: Magicbricks, India’s leading real estate platform, released its flagship PropIndex Report (October-December 2023) which observed a significant surge of 11.2% YoY in property prices in Bengaluru. The report further unveiled that despite the price rise, the residential demand increased 12% YoY in the same quarter, while supply reduced 21.9% YoY.

At the same time, compared to the previous quarter, the residential demand decreased 13.6% QoQ as prices increased 3% QoQ and supply reduced 2.9% QoQ, a cyclical reduction due to fluctuations in demand, prices, and supply that shape market dynamics. The average rates of ready-to-move and under-construction properties in Bengaluru increased 2.2% QoQ and 4.9% QoQ respectively.

Elaborating on these trends, Abhishek Bhadra, Research Head, Magicbricks, commented, “The year 2023 served as a pivotal period for the real estate sector, witnessing an exponential surge in residential demand propelled by robust macroeconomic factors and positive customer sentiment. However, constrained residential supply and increasing home loan rates had an inflationary impact on residential prices, subsequently declining demand this quarter. Despite these short-term challenges, we foresee a positive trajectory for residential demand in the medium to long term, anticipating a rebound in supply and moderation in residential prices.”

The report further shared that the residential demand in Bengaluru was dominated by 3BHK configurations, commanding a substantial 48% share, closely trailed by 2BHK configurations, which accounted for 29%. Sarjapur Road and Whitefield emerged as the preferred residential localities in Bengaluru.

The report, based on insights from the behavior and preferences of over 2 crore customers within the primary (first time sale) and secondary (resale) residential real estate market on the Magicbricks platform, also unveiled that across 13 key cities, property prices surged 18.8% YoY between with an 18.8% YoY and 3.97% QoQ surge between October and December 2023. This report also revealed notable trends in residential demand, supply, and property rates in Bengaluru.

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