New Delhi, Apr 2 (IANS): Property prices rose the most in the southern markets of the country during the January-March quarter showed a recent report.

The latest Magicbricks PropIndex report noted that from the price perspective, the southern region witnessed the most price increments in Q1 2021in both under-construction and ready-to-move-in segments.

Prices in Chennai rose by 1.5 per cent followed by Hyderabad and Bangalore at 1.3 per cent and 1 per cent respectively. In the west, the biggest market, Mumbai saw prices increment by 1 per cent alongside a significant 2 per cent increment in Thane.

In the north, the significant markets of Gurugram and Noida also improved by 0.7 per cent and 1.2 per cent, respectively.

The report noted that demand in India's residential real estate surpassed the pre-Covid levels during the period under review with cities like Ahmedabad and Greater Noida recording 7 per cent and 13 per cent growth and supply growing by 8 per cent at a pan-India level.

Magicbricks PropIndex also states that the residential real estate market is seemingly recovering well from the impact of the pandemic and with buyer-search volumes moving consistently upwards for both buy and lease ever since the festive season.

A host of factors like reduced home loan interest rates, reduction in stamp duty, and discounts and deals offered by developers have made home buying an attractive proposition in the country.

This has also led the developers to launch new projects across the country and Hyderabad led the way with a significant 20 per cent rise in supply, it said.

Sudhir Pai, CEO, Magicbricks said: "The first quarter of the year 2021 has indicated a strong revival in the economy. The Indian economy is expected to grow by 10-13 per cent in FY 22 as per predictions by various multilateral agencies. After the festive season euphoria, we saw rationalisation of the surge in traffic volumes in some cities in Q1 2021."

"From the price perspective, the southern region witnessed the most price increments in Q1 2021 in both under-construction and ready-to-move-in segments. We foresee the momentum gained in the last six months to continue across both supply and demand."