Makaan.com - Property prices in Chennai drop by 5.5% in the last 12 months
Property prices in Chennai have shown a reasonable downtrend in the last one year. As per the latest Makaan.com property index (MPI) for September 2010, real estate prices in the city have decreased by 5.5% in the last 12 months. When one further looks at the data; following are the emerging trends.
- Monthly Trend: In the last one month, Chennai has registered a drop in property prices. The Chennai index for August 2010 stood at 1083 as against 951 in September 2010, a 7.9% drop in the last 30 days.
- Quarter Analysis: Over the last 3 months, the MPI for Chennai has seen a dive - it has moved from 1015 in June 2010 to 951 in September 2010, a 1.8% decrease.
- Year-on-Year Movement: As compared to last year i.e. September 2009, the Chennai MPI in September 2010 has gone down by 5.5%. Prices had dropped significantly in the second quarter of 2009 due to the economic slowdown. From thereon, the prices have been rising steadily, with minor highs and lows over the last 3-4 quarters.
City Level: Over the last 1 year, i.e. September 2009 to September 2010, most cities have seen significant increase in property prices. Kolkata, Delhi, Bangalore and Ahmedabad have seen very steep price increases – upwards of 10%. Pune, Mumbai, Hyderabad have seen a price rise of fewer than 10%. Chennai is the only city that has seen a reduction in property prices by 5.5%. These changes have led the National Index to move up by 11.9% over the last 1 year.
- Going forward: The signals from the Indian Economy are quite positive - Industrial output, Exports and the GDP are rising, and jobs are more secure than before. At the same time interest rates are likely to go up, which may make buyers cautious in their purchase decisions. In the current situation one would expect the realty sector to maintain stability of prices.