Property prices in Chennai appreciates by 9.1% - says Makaan.com Property Index (MPI)
A potential drop in property prices in Chennai has been a topic of debate and discussion for the past few months, but the latest release of Makaan.com Property Index (MPI) actually negates this point of view. As per the latest release of Makaan.com Property Index (MPI) for October 2011, the property prices in Chennai have actually appreciated by 9.1% in the last three months. The Chennai property index for October month stood at 1569 compared with 1438 in the month of July 2011. The appreciation in prices does not seem to be a short term phenomenon as Chennai market has registered a price appreciation over the past 12 months period as well.
If one were to analyze the property prices trends in other Indian cities (over the past three months), one observes that cities like Kolkata, Pune, and Delhi have shown an appreciation of 17.4%, 12.4% and 4.2% respectively. Bucking the trend are the property prices in cities like Hyderabad, Bangalore, Mumbai and Ahmedabad that have registered a fall of 21.6%, 7.8%, 5.6% and 2.8% respectively, during the same period. At the National level, the MPI has remained stable at 1483 compared with 1495 in the corresponding month last quarter, which is a small drop of 0.8%.
Commenting on the findings Aditya Verma, EVP & COO, Makaan.com says, “Indian market is undergoing a short term correction in property prices which is actually healthy for the market. This will lead to some revival of buying interest. The price appreciation in Chennai has been largely fuelled by the stable political environment in the city after the state elections. We expect the prices to remain range bound over the medium term (6-9 months). A meaningful revival is expected only by July-Sept 2012 when price correction will be additionally supported by softening of home loan rates.”
Makaan.com Property Index (MPI) is part of the knowledge division of Makaan.com called MakaanIQ that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry. MakaanIQ was the first to predict a shift towards affordable housing in first half of 2008. The Index is another attempt at bringing objective information and analysis for the benefit of the Industry and the country. 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 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. The prices of properties were obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force. For details check www.makaan.com/PropertyIndex or log on to www.MakaanIQ.com.
Last Updated: Mon Dec 12 2011