New Delhi, Jan 5 (IANS): As the Indian real estate sector recovered from the lockdown lows during the second half of 2020, the average price of residential properties increased by one per cent during October-December 2020, according to the Magicbricks' latest PropIndex.
It showed that while the prices for the much in demand ready-to-move segment remained stable during Q4 of 2020, the under-construction segment prices rose by two per cent, amid the recovery phase. The increase in under construction prices was primarily led by western and southern regions.
At the city level, the western region witnessed the most price increments, as prices in Mumbai Metropolitan Region (MMR) and Ahmedabad rose by one per cent and 1.4 per cent, respectively, while remaining stable in Pune.
In the South, while Bengaluru remained almost stable, Hyderabad and Chennai witnessed quarterly price increments even though YoY price change was still negative by 1-3 per cent.
Prices in the Delhi-NCR remained flat in Q42020, with a slight decline in the core markets of Noida and Gurugram. However, it has shown an improvement in affordable locations like Noida Extension, New Gurugram, and Sohna.
The property search volumes remained at elevated levels in Q4 2020 at about 30 per cent higher than pre-Covid levels, after touching more than the 50 per cent hike in Q3 2020, as buyers continued to make a beeline because of Covid-led availability of distress deals and festive season discounts.
On the supply front, Magicbricks witnessed more than a 25 per cent increase in property listings in Q4, post falling by 10 per cent in Q3 due to improvement in new launches and secondary market listings.
Commenting on the PropIndex report, Sudhir Pai, CEO, Magicbricks, said: "With uncertainties around the economy and jobs now stabilising, we are witnessing signs of growth in the real estate sector as well. The economy has also stopped shrinking since October 2020 and now we are seeing a V-shaped recovery in the real estate sector."
With impetus from the government in the form of stamp duty cuts in some states and first-home buyer incentives, buyer demand is expected to stay at elevated levels in 2021, he said.