The Indian real estate market continues to experience a significant surge in residential demand, with a 12.3% increase quarter-on-quarter (QoQ) between July and September 2024, according to Magicbricks’ latest PropIndex Report. The rise in demand comes alongside an 8.3% increase in residential prices across major cities.

Price Hikes in Key Markets

The report highlights notable price increases in cities like Noida, Gurugram, and Greater Noida, which saw residential rates climb by 16.9%, 15.5%, and 15.1% QoQ, respectively. In Noida, property rates now average INR 11,625 per square foot (psf), up from INR 9,945 psf in the previous quarter. Similarly, rates in Gurugram rose to INR 14,650 psf, while Greater Noida reached INR 7,752 psf.

Rising Investor Interest in Satellite Cities

According to Abhishek Bhadra, Head of Research at Magicbricks, the market is seeing strong interest from both homeowners and investors. He noted that demand is growing at its fastest pace in two years, particularly in satellite cities like Noida, Gurugram, and Greater Noida. “There is a growing fear of missing out (FOMO) among investors, which is driving this increased market activity,” said Bhadra. He also suggested that while residential prices are likely to continue rising, the pace may moderate as more supply enters the market.

Capital Appreciation in Under-Construction Properties

The report also highlights a growing interest in under-construction (UC) properties, which have seen an 11% capital appreciation QoQ across tracked cities. Thane, Gurugram, and Noida showed the highest growth, with Thane leading at 19.5%, followed by Gurugram at 17.3%, and Noida at 14.5%.

3BHK Units Lead Demand in Most Cities

In terms of unit preferences, the report shows that 3BHK apartments dominate the market, accounting for over 50% of total demand in most cities. However, in Chennai, Navi Mumbai, and Thane, 2BHK units remain the top choice for homebuyers.

The findings of the report underscore the sustained growth of India’s real estate sector, driven by both end-users and investors, despite rising property prices.