India’s residential property market recorded an improvement in buyer interest in the July-September quarter, with housing demand rising 8.2% sequentially as festive-season purchases gathered momentum,
according to Magicbricks’ PropIndex report. However, demand remained 9.6% lower than a year earlier, indicating that the recovery is yet to regain its previous strength.
The increase in demand was accompanied by a modest rise in property prices, with national rates climbing 1% during the quarter. Bengaluru, Ahmedabad, Navi Mumbai, Thane and New Delhi were among the markets that recorded relatively strong growth in buyer interest.
The report pointed to a notable increase in demand for premium housing. Searches for properties priced above ₹3 crore rose 34% in Greater Noida, 22% in Bengaluru and 19% in Noida, highlighting growing interest in high-value homes in select markets.
Mid-sized properties continued to dominate buyer preferences. Homes measuring 750-1,250 square feet and 1,250-2,000 square feet together accounted for more than two-thirds of housing demand. Two-bedroom and three-bedroom apartments remained the preferred configurations among prospective buyers.
Housing demand outpaces new supply
The supply of residential properties grew by just 1.9% nationally during the quarter, trailing the increase in buyer demand. Demand exceeded supply in 10 of the 13 cities analysed in the report, pointing to continued pressure on available housing inventory across several markets.
Bengaluru recorded a 14.2% increase in housing demand, the strongest growth among the major markets listed in the report, followed by Ahmedabad at 13.5%, Navi Mumbai at 10.9%, Thane at 10.3% and New Delhi at 9.9%.
Mumbai also recorded an 8.2% rise in demand, while Hyderabad and Chennai saw increases of 8% and 7.2%, respectively.
Demand growth was more subdued in the National Capital Region’s other major markets. Housing demand rose 3% in Gurugram, 2.6% in Noida and 0.8% in Greater Noida.
On the supply side, Bengaluru recorded a 9.4% increase in new listings, while Noida saw a 7.5% rise and Hyderabad registered growth of 5.7%. Supply contracted in Ahmedabad, Thane, New Delhi, Chennai and Gurugram.
Realty developers expect festive-season momentum to continue
Real estate developers expect the festive season to support homebuyer sentiment, with auspicious occasions traditionally encouraging property purchases.
“The festive season has always been a significant period for the real estate sector, marked by positive buyer sentiment and a strong desire for new beginnings,” said Mohit Agarwal, Business Head at Conscient Infrastructure Pvt. Ltd. “We believe this festive season will see homebuyers making thoughtful, future-ready investments that align with their lifestyle aspirations and long-term legacy,” he added.
Rohit Kishore, CEO of Hero Realty, said festive occasions continued to support property sales. “Auspicious days have always driven strong sales graphs, and the momentum never wanes. With the rising potential of the industry and the festive promise that uplifts sentiments, we foresee strong demand,” Kishore said.
Housing prices rise modestly across most markets
Residential property prices increased in most of the markets covered by the report, although the pace of appreciation varied. Mumbai recorded a 2.4% quarterly increase in rates, while Chennai saw prices rise 2.3%. Ahmedabad registered a 1.5% increase, followed by Bengaluru at 1.3%. New Delhi and Hyderabad recorded price growth of 1% and 0.8%, respectively.
Navi Mumbai and Noida saw relatively modest increases of 0.7% and 0.4%, while prices rose 0.3% in Thane.
In contrast, Gurugram recorded a marginal decline of 0.2%, while Greater Noida saw prices fall 0.5%.
The latest readings suggest that the festive season has helped revive quarterly housing demand, but the market continues to face uneven conditions across cities. The gap between demand and new supply, along with variations in property prices, is likely to remain important for homebuyers assessing purchase decisions in the coming months.
