Property prices in Delhi NCR appreciates by 4.2% - says Makaan.com Property Index (MPI)
A potential drop in property prices in Delhi NCR 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 Delhi have actually appreciated by 4.2% in the last three months. The Delhi NCR property index for October month stood at 1607 compared with 1543 in the month of July 2011. The appreciation in prices does not seem to be a short term phenomenon as NCR market has registered a price appreciation over the past 12 months period as well. The Delhi property index was at 1285 in October 2010 compared to 1607 in October this year, indicating a jump of 25%.
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 Chennai have shown an appreciation of 17.4%, 12.4% and 9.1% 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, “The rise in property prices in Delhi NCR can be attributed to fewer fresh supplies hitting the market and the holding power of existing sellers & developers. In fact, a small drop in prices at this stage would be extremely healthy and can lead to revival of buying interest. 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 supported by softening of home loan rates.”