Property prices in India appreciate by 3.3% in May 2011 - says Makaan.com Property Index
Makaan.com Property Index – National
- Monthly Trend: At the National level, the property prices increased by 3.3% in the last one month. The Index in May 2011 stands at 1446 as against 1399 in April 2011.
- Quarter Analysis: Over the last 3 months, the MPI has seen a small rise - it has moved from 1347 in February 2011 to 1446 in May 2011, a increased by 7.3%.
- Year-on-Year Movement: As compared to last year i.e. May 2010, the MPI in May 2011 has moved up by 26.4%. Property prices rose significantly in the second quarter of 2010 due to the economic slowdown. From thereon, the prices have been rising steadily, with minor highs and lows over the last 3 quarters.
Makaan.com Property Index – City level
- Monthly Trends: In the last one month most cities have seen increase in property prices. The key property markets Mumbai, Bangalore, Ahmedabad and Hyderabad registered an increase in the prices. Prices dropped in the city of joy, Kolkata by 6.4%. Whereas Delhi, Chennai and Pune property rates remained stable.
- Quarter Analysis: Over the last quarter, i.e. between February 2011 to May 2011, there are many steep upward and downward swings in property prices across the country. Property prices in Delhi and Kolkata witnessed a drop. At the same time Mumbai, Bangalore, Hyderabad, Pune and Ahmedabad property prices saw an increase.
- Year-on-Year Movement: Over the last 1 year,i.e. between May 2010 to May 2011, most cities have seen significant increase in property prices. Except for a property price drop in Kolkata, all the other major cities have registered a considerable rise in property prices. Property price increase in these cities have led the National Index to increased by 26.4% over the last 1 year.
- Going forward: Indian Real Estate market is going through a challenging phase with multiple macro economic headwinds like poor liquidity for developers, increased cost of construction, high land prices, delayed projects, high interest rates. These factors are keeping the home buyers away from the market. Over the coming months the property prices in India are likely to move in a narrow range with a slight negative bias.
Last Updated: Fri Sep 06 2013