Data revealed by Delhi-based portal makaan.com in its annual report of eight top cities
Property prices in Pune went up by 9.2% in the last quarter, making the city one of the only three in the country to see a rise.
Apart from Pune, Ahmedabad and Kolkata saw a price rise in the January to March quarter. In Mumbai, the prices dropped by 2% in the first quarter, while in Delhi they dropped by 7.6%.
The data was revealed by Delhi-based real estate portal makaan.com as part of its annual real estate indices report of eight top cities in India. The report was released on Tuesday.
Vice president of Confederation of Real Estate Developers of India (CREDAI) Pune, Rohit Gera said, "Continuous rise in the Pune property prices can be attributed to two reasons. Firstly the city never saw a major rise in prices as compared to other cities. Prices here rose gradually. On the other hand, Mumbai and Delhi saw a peak in the later half of 2009 and therefore a little correction was expected there."
He added, "In Pune, when the slowdown was at its peak, no new projects were announced and builders put a halt to the existing work, resulting in a situation where there was no additional supply despite demand. Therefore, builders here could once more afford to increase the prices."
But according to the report, India has shown a reasonable uptrend in the last 12 months. As per the March 2010 Index, the national index stood at 1,117 compared to 954 in the corresponding month last year, an increase of over 17%.
According to the report, "The rise in national index is attributed to the rise of property prices in the western markets like Pune, which rose by 28.1% annually."
The index is a matrix to identify the fluctuations in property prices on a month to month basis. The data is collected through information collected on the website.
Vice president and business head of makaan.com Aditya Verma said, "Going forward, the signals from the economy are quite positive. The Budget for FY11 has been received positively. There is overall optimism in all sectors. Job visibility is better among the salaried class. Realty sector is seeing the effects of this in the form of new launches across cities. For sustained development, it is critical to maintain property prices at the current level. Any attempt to increase prices can lead to fall in demand."