Mumbai and Delhi NCR begins to show correction in property prices - Says Makaan.com Property Index (MPI)
After a long gap, some good news for home buyers, the release of December 2012 Makaan.com Property Index (MPI) portrays certain city wise trends that seem to be favorable for the buyers. The property index for major cities like Mumbai, Delhi and Ahmedabad either show a stabilization or depreciation; thus, indicating an initial softening of the property rates.
MPI data released today confirms that there is a 2.4% depreciation in Mumbai property prices for the month of December 2012. The Mumbai Property Index stood at 1507 in November 2012 and has come done to 1471 in December 2012. On a quarterly analysis as well, the prices have depreciated by 7.8%; the Index has dropped from 1597 in September 2012 to 1471 in December 2012. On an annualized basis as well, the prices have moved down from 1526 in December 2011; a deprecation of 3.6% was noted.
Similarly, the Delhi property index has registered a minor drop of 0.9% on a monthly basis; the index in December 2012 stands at 1493 as opposed to 1507 in November 2012. Over the last three months, the Delhi Property Index has seen a drop of 9.4%; it came down from 1649 in September 2012 to 1493 in December 2012. The correction in prices seem to continue in the yearly data as there has been a depreciation of 3.4%
Although, the overall drop is not significant, there is a ray of hope that the present trend in Mumbai and Delhi NCR might continue due to inventory overhang. This is a welcome change for the home buyers who have been burdened by high property prices and home loan interest rates. Ahmedabad index also dropped by 2% for the month of December 2012.
Observing the findings, Aditya Verma, EVP & COO, www.makaan.com says, “The real estate market in Mumbai and Delhi NCR is undergoing a small correction in property prices. It needs to be seen if this correction is sustainable. Overall any correction would prove to be healthy and should be welcomed. It will encourage fence sitters to enter the market.”