Property prices in Chennai drop by 4.5% in May 2010- says Makaan.com property index
Monthly Trend: The property prices in Chennai have seen a drop of 4.5% in the last one month. The Index in May 2010 stands at 1052 as against 1101 in April 2010.
Quarter Analysis: Over the last 3 months, the MPI has decreased by 11.7% - it has moved from 1191 in Feb 2010 to 1052 in May 2010, an 11.7% decrease. The Chennai index saw fluctuations in March/ April and a fall in May 2010.
Year – on – year movements – As compared to last year i.e. May 2009, the MPI in May 2010 has decreased by 10.3%.
City Level: Over the last 1 year, i.e. between May 2009 to May 2010, most cities have seen significant increases in property prices. Kolkata, Ahmedabad & Delhi have seen very steep price increases - upwards of 30%. Property at Pune, Mumbai have also seen 14-25% price increases. In comparison to these, Bangalore has seen modest price improvements - 9.7%. These cities have led the National Index to move up by 17.4% over the last 1 year. Hyderabad and Chennai have seen a reduction in property prices in the range of 9-12% in the same period
Going Forward: The stock markets have been volatile in the last few weeks due to the Eurozone's economic problems. On the other hand - the signals from the Indian Economy are quite positive - Industrial output, Exports and the GDP are rising, and jobs are more secure than before. At the same time interest rates are likely to go up, which may make buyers cautious in their purchase decisions. In the current situation one would expect the realty sector to maintain stability of prices.