The residential property market in India has witnessed a significant increase in demand during the April-June quarter of 2023, according to a report by Magicbricks. The report highlights a year-on-year growth of 7.8% and a sequential growth of 10.4% in residential property demand during this period.
The surge in demand can be attributed to various factors, including favorable government policies, increased affordability, and a growing preference for owning a home. Let’s delve deeper into these factors to understand the reasons behind this upward trend.
Firstly, the government’s initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and the implementation of the Real Estate (Regulation and Development) Act (RERA) have played a crucial role in boosting the residential property market. These policies have instilled confidence among homebuyers by ensuring transparency, accountability, and timely delivery of projects.
Secondly, the increased affordability of residential properties has made homeownership more accessible to a larger section of the population. Lower interest rates on home loans, coupled with various tax benefits, have incentivized potential buyers to invest in real estate. Additionally, developers offering attractive payment plans and discounts have further fueled the demand.
Furthermore, the COVID-19 pandemic has also influenced the surge in residential property demand. The prolonged lockdowns and work-from-home culture have made individuals realize the importance of having a comfortable and spacious living space. Many people are now looking to upgrade their homes or invest in larger properties that can accommodate their changing lifestyle needs.
The report by Magicbricks also highlights the changing preferences of homebuyers. With the rise of remote work and online education, there has been an increased demand for properties with dedicated office spaces and study rooms. Additionally, amenities such as green spaces, fitness centers, and recreational facilities have become essential criteria for potential buyers.
The surge in demand is not limited to metropolitan cities but is also observed in tier-2 and tier-3 cities. The availability of affordable housing options and improved infrastructure in these cities has attracted buyers looking for a better quality of life at a lower cost.
However, it is important to note that the increase in demand has also led to a rise in property prices. As the demand-supply gap narrows, developers are gradually increasing the prices of residential properties. This may pose a challenge for some potential buyers, especially first-time homebuyers.
In conclusion, the residential property market in India has witnessed a significant increase in demand during the April-June quarter of 2023. Favorable government policies, increased affordability, changing preferences, and the impact of the COVID-19 pandemic have contributed to this surge. While this presents opportunities for both buyers and developers, it is crucial to monitor the market dynamics and ensure sustainable growth in the long run.
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- Source: Plato Data Intelligence.