MUMBAI: Housing demand declined by 8.7% quarter-on-quarter during Oct-Dec even as supply rebounded by 3.4% across key cities, hinting at a phase of measured moderation in India’s residential real estate market. Residential prices rose by 1.5% QoQ and 16.9% year-on-year during the quarter, the slowest pace of appreciation recorded during the last two years, according to Magicbricks PropIndex.The moderation in demand aligned with festive spending patterns and monetary policy transitions, as homebuyers adopted a wait-and-watch approach amid evolving interest rate expectations. However, housing supply gained momentum during the quarter, led by Greater Noida, Gurugram, Thane and Noida. The revival was concentrated in the mid- and upper-mid segments, as developers increasingly aligned new launches with end-user affordability thresholds. In 2026, market momentum is expected to be influenced by interest rate clarity, infrastructure execution, and continued alignment of new supply with affordability thresholds, Magicbricks said.
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