Property prices in Bangalore show a modest fall of 0.7% in March 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 Bangalore Property Index
1. Monthly Trend: At the city level, the property prices in Bangalore have remained stable with a slight negative bias. The Index in March 2010 stands at 941, which is 0.7% lower than February 2010 when the MPI was 947.
2. Quarter Analysis: Over the last 3 months, the Bangalore Property Index has moved from 979 in December 2009 to 941 in March 2010, a 3.8% drop.
3. Year-on-year movement: As compared to March 2009, the Bangalore Property Index (in March 2010) has gone down by a small 2.5%. Bangalore property market has not seen any significant price appreciation over the past 12 months. The prices attempted to head northwards during the November’09 to January 2010 period but the trend was not sustained.
4. National Index: Between March’10 and February’10 the National Index has been flat with a small positive price movement of 0.8%. This is on the back of a 4% price appreciation in Delhi and around 5.2% jump in Pune. Property prices in Bangalore and Mumbai have remained the same in March’10 with a slight negative bias. In terms of category B cities, Kolkata and Ahmedabad have appreciated by 11.3% and 9.8% respectively whereas Chandigarh, Hyderabad and Chennai have corrected by 9.6%, 7.5% and 4.7% respectively.
5. Going Forward: The signals from the economy are quite positive - the Budget for FY2011 has been received positively, there is overall optimism in all sectors, job visibility is better among the salaried class. And the Realty sector is seeing the effects of this in the form of new launches across cities and higher buyer traffic. One would hope and expect these to help the volatile realty sector to stabilize in the coming months.