PUNE PROPERTY PRICES ZOOM 28.1 PC IN A YEAR
Online real estate service Makaan.com on Tuesday said in its quarterly property index for March 2010 that property prices in Pune grew by 28.1 per cent in the past year, which is the second highest growth after Mumbai. As per the March 2010 release of Makaan.com Property Index (MPI), the national index stood at 1117 compared to 954 in the corresponding month last year, an increase of over 17 per cent.
The rise in national index is attributed to the hardening of property prices in the markets of Mumbai and Pune Property, which rose by 29.4 per cent and 28.1per cent respectively. Delhi rose by 6.8 per cent in the same period.
Putting pressure on the index were the property price movements in southern cities of Hyderabad, Bangalore and Chennai that corrected by 3.2 per cent, 2.5 per cent and 1.4 per cent respectively over the last one year. A price index is average of prices for a given class of goods or services in a ' given region, during a given interval of time and comparative price change during a certain period.
'As per the March 2010 MPI, the Pune index stood at 1197 compared 934 with in the cor-responding month last year, an increase or 28.1 per cent. In the last one quarter, Pune Index has moved from 1096 in December 2009 to 1197 March 2010, registering a 9.2 per cent rise," a company release said.
Prices fell in the first half (January-June period) of 2009 when the index dropped from 1000 to 946. This period was marked by complete lack of interest in investors and home buyers in making long term high value purchase decisions.
With the Indian economy showing signs of revival and consumers becoming more confident about their future earnings, the property prices startedrising in the second half (July-December period); with the index reaching 1128 in December 2009.
"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," VP and Business Head Makaan.com Aditya Verma said.
However, for sustained development, it is critical to maintain property prices at the current ievel. Attempt to increase prices can lead to fall in demand, Verma cautioned.