Property prices in Hyderabad drop by modest 3.4% in the last one year - says Makaan.com
As per the latest release of Makaan.com Property Index (MPI), real estate prices in Hyderabad have dropped by a marginal 3.4% in June’10 compared with the same month last year. The index for the month of June stood at 948 vis- a- vis 981 a year ago. Over the past one year, the property prices have moved in an extremely narrow range for most southern Indian cities including Hyderabad.
The modest drop in the Hyderabad index can be attributed to the softening of property prices in the underlining markets of Secundrabad and Greater Hyderabad. The property price erosion in these markets was more than the Hyderabad city average. However, there has been a modest gain (of around 6%) in the property prices in main Hyderabad city.
If one were to look at the short term (quarterly) trend and compare the price index for June’10 with that of March’10, one would continue to observe consolidation in property prices. The Hyderabad index during this period has moved from 923 in March’10 to 948 in June’10 an appreciation of 2.7%. This indicates continuation of factors, mainly the Talengana issue, which are preventing any significant appreciation in property prices. When it comes to other major cities, the index has moved up in markets like Delhi (15.1%), Ahmedabad (10.3%) & Kolkata (5.8%) whereas it has fallen in markets like Pune (-8.6%), Bangalore (-0.8%), Mumbai (-4%) and Chennai (-10.6%).
Commenting on the findings, Aditya Verma – COO, Makaan.com says, “In the near term the mood seems to be that of caution. The home buyers seem to be in a wait and watch approach. The price movement over the next few months will determine the next definitive trend”.