Housing market shrugs off interest-rate hikes, demand up

The recovery in the housing market has continued despite rising interest rates as both demand and supply of properties have witnessed growth during the quarter ended September.

The aggregate demand indicated by the searches during the quarter has increased over 7.3% from a year ago along with 6% rise in supply based on the listings, showed the Magicbricks PropIndex. The buoyancy in demand for residential properties has led to a 9.1% YoY and 2% sequential rise in housing prices during the quarter. While prices of ready-to-move properties increased 1.5% sequentially and 8.8% from a year ago, prices of under-construction properties also witnessed 3.8% sequential and 13.4% YoY rise.

"After uncertainty in the past few years, 2022 has ushered in relative stability and recovery for the residential sector. Home sales have been strong all year, and the upcoming festive season is likely to further spur the growth as it is considered an auspicious time to make real estate investments," said Sudhir Pai, CEO, Magicbricks. Mapping trends across 13 cities, the report highlights that Greater Noida (9.9%), Gurugram (3.7%), Bengaluru (3.7%) and Mumbai (1.9%) witnessed the highest sequential growth in residential demand.


(Magicbricks is a part of Bennett, Coleman and Company Limited, which publishes The Economic Times)