Makaan.com launches India's first Property Index
Delhi: Makaan.com, India's fastest growing online real estate website by People group has launched the country’s first Property Index. Christened Makaan.com Property Index (MPI) the tool is aimed at empowering homebuyers and the real estate industry with up-to date information related to movement in residential property prices. Apart from analyzing the trends nationally, Makaan.com Property Index will also track property price trends for major metros and tier II cities of India. The Index is intended to serve as an objective tracker of property trends. It is meant to aid in decision-making and is expected to be used by both real-estate buyers and the industry.
This index is based on minimum database size of 20,000 data points every month and the analysis has been drawn over a period starting Jan’09. The complex algorithm takes into account the property prices as base and then factors in the demand and supply of residential properties for each of the cities covered by it. Care has been taken to give weightage to cities in line with the size of underlying property market. The prices of properties were obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force.
Speaking on this initiative, Mr. Aditya Verma, Business Head and Vice President, Makaan.com said, “Makaan.com Property Index (MPI) is the first of its kind in the Indian real estate industry and is a result of 2 years of thought, work and analysis around creating intelligence for the real-estate industry. It is a significant milestone for our broader mission of providing tools, information and intelligence for property buyers and sellers so naturally we are very excited".
MPI tabulates the movement in residential property prices from Jan’09. According to Index, most Indian cities witnessed a price correction in the first half (Jan-June) of 2009. The national index slipped from 1000 to 946 during this period, a drop of 5.7%. There has been an upward trend from thereon. If one observes MPI during the second half of 2009, it has moved from 946 levels (June’09) to 1128 (Dec’09) signaling an improvement of 19.2% in property prices. Over the 12 months period from Jan-Dec’09 the property prices in India have gained by 12.8%.
At the city level, Mumbai has seen the maximum gain, of 24.7%, during 2009. Delhi on the other hand, experienced an 8.8% improvement; signaling a relatively modest rise in property prices. While most of the metros have recovered in terms of prices, Hyderabad & Bangalore still continue to experience property prices lower than last year. In fact Hyderabad has shown a decline of 7.7% during 2009.
Makaan.com Property Index (MPI) is part of the intelligence division of Makaan.com called MakaanIQ that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry since Makaan.com was launched. MakaanIQ was the first to predict a shift towards affordable housing in 2008. The Index is another attempt at bringing objective information and analysis for the benefit of the industry and the country.