Property prices in Bangalore grow by a modest 3% in the last one year - says Makaan.com Property Index
As per the latest release of Makaan.com Property Index (MPI), real estate prices in Bangalore have shown a modest gain of 3% in June’10 compared with the same month last year. The index for the month of June stood at 934 vis- a- vis 906 a year ago. Over the past one year, the property prices have moved in an extremely narrow range for most southern Indian cities including Bangalore.
The modest rise in the Bangalore index can be attributed to the hardening of property prices in the underlining markets of West and East Bangalore. The property price appreciation in these markets was more than the Bangalore city average. Other popular markets like South Bangalore and North Bangalore saw an appreciation lower than the city average whereas Central Bangalore saw a negative growth in property prices over past 12 months.
If one were to look at the short term (quarterly) trend and compare the price index for June’10 with that of March’10, one would continue to observe consolidation in property prices. The Bangalore index during this period has moved from 941 in March’10 to 934 in June’10 a marginal fall of 0.8%. This indicates continuation of factors, mainly higher home supply, which are preventing any significant appreciation in property prices. When it comes to other major cities, the index has moved up in markets like Delhi (15.1%), Ahmedabad (10.3%), Kolkata (5.8%) and Hyderabad (2.7%) whereas it has fallen in markets like Chennai (-10.6%), Mumbai (-4%) & Pune (-8.6%).
Commenting on the findings, Aditya Verma – COO, Makaan.com says, “In the near term the mood seems to be that of caution. The home buyers seem to be in a wait and watch approach. The price movement over the next few months will determine the next definitive trend”.