Property Prices in Bangalore remain stable in January 2010 says Makaan.com Property Index (MPI)
Empowering homebuyers and industry players through Makaan.com Property Index
1. Makaan.com, India’s fastest growing online real estate website by People group has launched country’s first Property Index. Christened Makaan.com Property Index (MPI) the tool is aimed at empowering homebuyers and industry players with up-to date information related to movement in residential property prices. This tool will assist the homebuyers to make an informed decision, when he/she heads out to buy their dream home. MPI aims to provide a direction to the buyer so that they invest their hard earned money in the right manner.
2. Makaan.com Property Index (MPI) is part of a bigger initiative known as MakaanIQ that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry.
Makaan.com Property Index Methodology
3. Coverage: Makaan.com Property Index tracks property price trends nationally and for major metros and tier II cities of India.
4. Frequency: Monthly – Starting Jan 2009.
5. Database: 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 prices of properties are obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force.
6. Index Algorithm: 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 weight age to cities in line with the size of underlying property market.
Makaan.com Property Index – Bangalore
Monthly Trend: The Bangalore MPI in January 2010 stands at 988, a 1% increase from December 2009 when it stood at 979. This indicates price stability in the Bangalore property market.
Quarter Analysis: The Bangalore MPI in the last 3 months shows a rise. In October 2009, the MPI was at 894 and rose 10.5% to 988 in January 2010. The rise in MPI indicates firming of the property prices.
Year-on-year movement: The MPI in Bangalore has dropped by 12 points to 988, a small 1.2% year-on-year fall. The yearly movements in the MPI for Bangalore beautifully depict the sentiment in the real estate sector over the last one year. As per the Index, Bangalore witnessed a price correction in the first nine months of 2009. With the economy showing signs of improvement, property prices in Bangalore started an upward rally from then on, which peaked in November, post which we are seeing stability in property prices.
National Index: Between December 2009 and January 2010, the National Index saw a drop of 4.3%, driven by the steep 10% drop in Mumbai and a small 3% drop in Delhi. Relative to National index, Bangalore prices have held firm in January 2010.
Going Forward: The Bangalore property market has seen price stability 3 months in succession. One needs to see how the property seekers and suppliers react to the Budget in March, which has given an additional Rs. 50,000 p.a. in the hands of the homebuyers through tax savings and has also extended the 1% subsidy on interest rate for housing loans upto 10 lacs.