Property prices in India drop by marginal 1.3% in July 2010 - says Makaan.com Property Index
- Monthly Trend: At the National level, the Indian property prices dropped by 1.3% in the last month. The Index in July 2010 stands at 1107 as against 1122 in June 2010.
Quarter Analysis: Over the last 3 months, the MPI has seen a small rise - it has moved from 1095 in Apr 2010 to 1107 in July 2010, a 1.2% increase.
- Year-on-year movement: As compared to last year i.e. July 2009, the MPI in July 2010 has moved up by 12.2%. Prices had dropped significantly in the second quarter of 2009 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 & Delhi registered a minor drop in 0.9% - 0.6% range. Kolkata has seen a drop in price by 4.8%, however prices in Pune have remained constant. Prices have fallen in Bangalore by around 7.9% and Hyderabad has seen an increase in price by 1.4%. Ahmedabad properties prices have been seen an increase of about 3.6% in last one month. Chennai has also seen a hike in prices by 1% in the last one month.
Quarter Analysis: Over the last quarter, i.e. between April to July 2010, there are many steep upward and downward swings in property prices across cities. Property prices in Delhi have moved up by 4.1%, in Ahmedabad by 5.6%, Kolkata by 1.6% and Hyderabad by 7.7%. In Chennai and Pune prices each have dropped by 6.9% respectively. In the same period, Bangalore saw a steep price drop (10.4%) however price in Mumbai there has been a rise by 5.3%.
Year-on-Year Movement: Over the last 1 year, i.e. between July 2009 to July 2010, most cities have seen significant increases in property prices. Kolkata, Ahmedabad & Delhi have seen very steep price increases – upwards of 30%. Pune, Mumbai have also seen 10-14% price increases. In comparison to these, Bangalore has seen price drop by 7.4%. These cities have led the National Index to move up by 12.2% over the last 1 year. Chennai have seen a reduction in property prices in the range of 10%, however Hyderabad has seen drop in prices by 0.5%.
- Going Forward: 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.
Last Updated: Tue Aug 20 2013