PNN
Indore (Madhya Pradesh) [India], October 18: The supply of apartments, row houses, and plots has notably increased, accompanied by a corresponding surge in demand. The reduction in unsold inventory and inventory overhang signifies a more balanced market. A clear indication of the favorable absorption and unsold inventory rate is the decrease in the MSF rate. Currently, the MSF is 6.25 per cent. SAA reports indicate a fall in the MSF rate of Indore real estate, the rate for Q3-2023 being around 2 per cent. Over the last decade, unsold inventory has drastically dropped by 89 per cent due to strong absorption and fewer announcements of newer projects.
During the first quarter of 2023, the supply and absorption rate averaged 95.75 per cent across various property types, including apartment complexes, individual floors, row houses, villas, and plots. In the first quarter of 2023, there were a remarkable 633 project sales, a significant increase compared to the previous quarter. Furthermore, the inventory overhang has decreased by 4 months, demonstrating a more robust equilibrium between supply and demand.
Over the last decade, unsold inventory has drastically dropped by 89 per cent due to strong absorption and fewer announcements of newer projects.
As per SAA's reports, Indore's post-Covid real estate scenario looks promising. Post-Covid revival of the Indore real estate market can be seen with a steady increase in the number of new project launches by various developers.
Newly launched property prices for plots saw a significant 20 per cent increase in the first quarter of 2023. When compared to the preceding quarter of Q4, 2022, these prices surged by 30 per cent.
The growing interest in premium housing options is evident through the surge in demand for higher-budget properties and 3 BHK homes.
After the pandemic, homebuyers have been seeking bigger homes and luxury housing is primarily defined by generous floor space, in addition to high-end amenities and a good location. Moreover, 3 BHK home demand in Indore exhibited impressive growth during Quarter 1, 2023, with a remarkable 70 per cent increase compared to the same period in 2022. The number of available 3 BHK units increased substantially from 36 to 118, signaling a growing preference for larger residential spaces in the city, as per SAA reports.
Factors such as lower home loan interest rates, reserve fund availability, and reverse migration of professionals have contributed to the increased preference for larger apartments. This shift has stabilized the market and led to the resurgence of demand for spacious living spaces.
In summary, the real estate landscape in Indore is poised for continued growth, offering a variety of opportunities for investors and homebuyers. As the city's commercial sector thrives, the real estate sector is expected to mirror this success in the coming years.
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