Rise in property prices
While property prices in India increased by 17 per cent during the last year, Pune registered a 28.1 per cent rise, states a report.
Property investors and real estate industry players can heave a sigh of relief. Property prices in the country have shown a reasonable uptrend in the last 12 months.
The national index stood at 1117 compared to 954 in the corresponding month last year, an increase of over 17 per cent, according to the March 2010 release of Makaan.com Property Index (MPI). The rise in national index is attributed to the hardening of property prices in the western markets or Mumbai property and Pune, which rose by 29.4 per cent and 28.1 per 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 ana 1.4 per cent respectively over the last one year.
Prices fell in the first half (|an-|une period) of 2009 when the index dropped from 1000 to 946. This period was marked by complete lack of interest among investors and home buyers in making long term high value purchase decisions. With the Indian economy showing sign of revival and consumers becoming more confident about their future earnings, the property prices started rising in the second half (|uly-Dec period), with the index reaching 1128 in December 2009.
November and December saw two interesting trends. Firstly, developers in Mumbai, Delhi and Bangalore increased the prices of their existing projects. Second[y, new launches happened at prices significantly higher than the prevalent rates. This rise was too fast and too high leading to crowding out of home buyer as they were caught off guard with this unexpected jump in rates. This led to lower transaction during the lanuary to March 2010 period. The national price index moved in a narrow range from 1080 to 1117 during this period; beautifully capturing the mood of the market.
As per the March 201 Ore-lease, Pune index stood at I 197 compared to 934 within the corresponding month last year, showing an increase of 28.1 per cent. In the last one Quarter, Pune index has moved from 1096 in Dec 09 to I 197 March 10, registering a 9.2 per cent rise. This increase can be attributed to the overall improvement in sentiments among the homebuyers.
Commenting on the findings Aditya Verma VP and business head Makaan.com said, "Going forward, the signals from the economy are Quite positive. The Budget for FYI I 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. Attempt to increase prices can leaa to fall in demand."
Makaan.com Property Index (MP1) has been bringing out property intelligence & research reports for the benefit of home-buyers and real estate industry.