Tag Magicbricks

New Delhi, September 6 2024: The Indian real estate market is currently experiencing a bull run, marked by soaring prices and escalating demand. At the same time, household incomes across the top 10 cities increased at a CAGR of 5.4%, while property prices surged at a CAGR of 9.3% (between 2020-2024). This growing gap in income and property price growth rates has weakened affordability.

Elaborating on the same, Magicbricks’ flagship report “Housing Affordability in Major Indian Cities” revealed that the Property Price to Annual Household Income Ratio (P/I Ratio) in India has increased from 6.6 in 2020 to 7.5 in 2024 (higher than the globally accepted benchmarks of 5). Based on the P/I Ratio, the report observed that Chennai (5), Ahmedabad (5), and Kolkata (5) are among the most affordable cities for residential investments in 2024, while the Mumbai Metropolitan Region (14.3) and Delhi (10.1) emerged as the least affordable.

Explaining the trends, Sudhir Pai, CEO, Magicbricks shared “Between the latter half of 2021 and 2022, residential investments were at their most affordable. During this period, the market was experiencing a resurgence, characterized by low interest rates, recovering household incomes, and modest increase in residential prices. However, homeownership sentiment has since peaked, resulting in demand significantly outpacing available supply, leading to a rapid and substantial surge in residential prices, presenting new challenges for affordable housing.”

Furthermore, the report revealed that the EMI-to-monthly income ratio in India has risen from 46% in 2020 to 61% in 2024, indicating a growing burden of EMIs on home buyers and reflecting affordability concerns nationwide, especially metros. The trend is more pronounced in MMR (116%), New Delhi (82%), Gurugram (61%) and Hyderabad (61%). In contrast, cities like Ahmedabad (41%), Chennai (41%) and Kolkata (47%) are relatively more affordable.

The report concluded that the current situation is likely to hit equilibrium conditions with market trends indicating a deceleration in price growth due to an anticipated increase in residential supply.

New Delhi, March 13, 2024: After a period of dormancy, the residential sector is currently experiencing remarkable resurgence, characterized by surging residential demand that has driven property prices up by nearly 15% in 2023. The demand, currently at a decadal high, has also spurred an increased interest in new projects, marking a notable trend in the sector.

In response to these evolving trends, Magicbricks, India’s leading real estate platform, has launched MagicHomes, an initiative which spotlights all the new projects across key cities of Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Kolkata, Pune, Ahmedabad, and Chennai.

Commenting on the launch, Sudhir Pai, CEO, Magicbricks highlighted the relevance of MagicHomes amidst the growing interest of customers in new projects. “The increasing prices of under-construction properties and the high velocity of sales reported by developers underscore the dynamic nature of the market, and reiterate the necessity for prompt decision-making based on reliable information. MagicHomes is an initiative in this direction, serving as a comprehensive directory of new projects offering up-to-date and essential information for seamless decision making by our customers.”

A centralized platform to assist customers in decision-making, MagicHomes includes information on authenticity and compliance of new projects sourced from verified authorities like RERA. Customers can evaluate projects across important parameters including master plans, builder history, project construction timelines and updates, price appreciation trends, and inventory details. MagicHomes also offers a curated selection of nearly 4000 editorial reviews from 280+ influencers and MBTV, India’s first real estate YouTube channel, providing unbiased insights to customers.

Elaborating on the same, Vivek Kumar, Head of Product, Magicbricks shared “Historically, homebuyers have favored completed projects over new projects due to uncertainties and limited access to information regarding the viability of new developments. However, with the changing preferences, MagicHomes serves as a single-window to assist customers in seamlessly comparing prices, assessing appreciation trends, and accessing comprehensive details of their preferred projects.”