Demand for smaller homes surges in September quarter: Magicbricks

Mumbai: India's housing property market witnessed a 3.1% sequential rise in demand in the September quarter, led by increased preference for smaller homes. The share of one- and two-bedroom apartments rose to 54% of total demand, reversing a two-year decline and indicating renewed focus on affordability, showed realty platform Magicbricks' PropIndex.

Overall supply expanded marginally by 1% sequentially but was down 4.5% from a year earlier. Prices continued to move higher across key cities, with Pune (41.4% on-year rise), Mumbai (29.6%) and Greater Noida (27.3%) reporting the sharpest increases.

Under-construction homes commanded a higher premium than ready-to-move units, with prices in Pune rising 29.1% sequentially for such properties against 15.8% for completed ones.

"The September quarter reinforced a fundamental market shift toward compact and mid-segment housing," said Sudhir Pai, CEO, Magicbricks. "While affordability constraints are shaping buyer behaviour, infrastructure-led optimism and evolving consumer aspirations continue to fuel demand across key micro-markets. Developers who align product offerings with affordability and lifestyle needs will define the next phase of sustainable housing growth."

The Mumbai Metropolitan Region continued to record steady buyer activity despite 9.7% sequential supply contraction in Mumbai and 10.7% in Navi Mumbai, supporting continued price growth.