Real estate market dynamics showcase a robust investment climate in 2024

As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to external factors and emerging trends.

Adgully’s annual feature, REWIND, revisits different sectors, identifies key developments, and gauges their long-term impacts. We speak to a cross-section of industry leaders to provide a 360-degree view of the industry landscape, growth trends, financial performance, disruptions, innovations, challenges, and more.

In this Rewind 2024 article, Prasun Kumar, Chief Marketing Officer, Magicbricks, does a recap of the trends and developments dominating the residential real estate sector in 2024, how Magicbricks performed during 2024, and the major developments and achievements during the year.

Overview of residential real estate in 2024

Homeownership sentiment is at its strongest, reflecting across key metrics. Residential demand continues to rise, with developers responding through expedited construction – evident from a 15% QoQ increase in under-construction supply between July and September. This year presents an excellent opportunity for homebuyers and investors alike, not only due to rising demand, but also increased rental yields, now at 3.62%. The market dynamics showcase a robust investment climate, combining growing demand with favourable returns on real estate investments.

Key trends and developments

Premium homes are becoming a significant focus for homebuyers, with 25.5% of respondents from our Housing Sentiment Index survey eyeing properties above Rs 1 crore, especially in the Rs 3.5-5 crore range. Post-COVID, there’s also a strong preference for bigger homes – 45% want properties over 2,000 sq. ft., and 56% favour 3BHKs or larger, reflecting the shift towards space and functionality.

Residential supply is also skewing towards premium homes with 52% of supply being priced above Rs 10,000 per sq. ft., across prime markets.

Another trend observed is that Tier 2 cities like Lucknow, Jaipur, and Kanpur are standing out with higher appreciation rates than metros like Delhi. Religious hubs and hill stations like Shirdi, Nainital, and Dehradun are also witnessing growing demand, driven by interest in holiday homes and lifestyle investments.

Emerging Tier 2 Stars: Lucknow (23.52%), Jaipur (18.46%), and Kanpur (15.62%) are outperforming Delhi (15.1%) in capital appreciation, highlighting their appeal for long-term investment.

Religious Hubs Gaining Momentum: Cities like Prayagraj (28% YoY), Varanasi (18%), Puri (52%), and Shirdi (67%) are experiencing a surge in residential demand, driven by thriving religious tourism.

Hill Station Boom: Demand is soaring in scenic spots like Nainital (60.89%), Dehradun (43%), Shimla (34%), Karnal (28%), and Rishikesh (26%), reflecting a strong trend towards holiday homes and lifestyle investments.

Magicbrick’s performance in 2024

2024 has been a landmark year for us, marked by initiatives that deliver maximum value to developers. We scaled up our Site Visit Product in Bengaluru and Hyderabad, collaborating with over 100 developers in each city and facilitating 1,000+ home bookings within six months.

Additionally, we have launched India’s first Property Visit Festival, running from December 15 to January 31, a unique effort to sustain robust residential demand. Traditionally, demand slows post-festive season, but this initiative connects developers with intent-driven buyers while simplifying homebuying journeys.

Our recent acquisition of PropViz enables us to offer cutting-edge 3D visualization tools like virtual walkthroughs and real-time inventory systems, further enhancing developer solutions. Together with verified leads and site visits, Magicbricks now provides a comprehensive suite tailored to developers' needs.

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