BENGALURU: Homeowners in Bengaluru are more interested in buying under-construction projects compared to fully completed homes, revealed a new study by MagicBricks.
There has been an uptick of 7.8 per cent quarter-on-quarter (QoQ) demand between January and March 2024 for under-construction properties in Indian cities with Bengaluru seeing a 5.7 per cent QoQ demand for its under-construction properties in one of the most substantial price increments.
The Propindex Report by MagicBricks said the reason for this trend is due to a consistent increase in the cost of residential properties since 2023, making under-construction projects affordable and more attractive investment for buyers.
Cities such as Noida (7.1% QoQ), Greater Noida (6.1% QoQ) and Mumbai (5.7% QoQ) also witnessed price increments in under-construction properties.
Abhishek Bhadra, Head of Research, MagicBricks, said, “Historically, homebuyers have often favoured completed projects over new developments. But against the backdrop of increasing residential prices in 2023, there emerged a discernible shift in preference towards relatively more affordable under-construction properties. Consequently, prices of under-construction properties are on the rise as well. In response to this evolving demand, we have observed that developers are swiftly expediting the completion of under-construction projects and launching new ones.”
Not just unfinished projects, homebuyers are also inclined towards investing in 2BHK units which the study said is influenced by the increasing residential prices across various cities. The report highlighted that the demand has gone up by 10 per cent from 32 per cent in October-December 2023 to 42 per cent between January-March of 2024. In Bengaluru, the 2BHK preference saw a spike from 29 per cent in the earlier quarter to 45 per cent in January-March.
“While we anticipate residential demand to continue increasing, albeit at a slower pace, there are promising signs indicating an increase in residential supply in the upcoming quarters. Consequently, we expect prices to stabilise, showcasing the market’s resilience in the face of evolving dynamics,” added Bhadra.
The report forecasts a continued uptrend in aggregate demand across the top 13 cities, including Bengaluru, registering a robust growth of 6.9 per cent QoQ and the demand continues to outstrip supply, resulting in a 2.9% QoQ increase in residential prices across these 13 cities.