Property prices in India grow by 18.6% in the last one year - says Makaan.com Property Index
As per the latest release of Makaan.com Property Index (MPI), real estate prices in India have grown by 18.6% in June’10 compared with the same month last year. The index for the month of June stood at 1122 vis- a- vis 946 a year ago. The trend for June’10 deserves a special mention as it was around this time last year that the property prices started to look up after 9 months period (Oct’09 to June’09) of continues decline caused by global meltdown.
The rise in the national index can be attributed to the increase in property prices of the underlining markets like Kolkata (50.7%), Delhi (41.7%), Ahmedabad (36.2%), Mumbai (15.7%), Pune (12.5%) and Bangalore (3%) while dragging the index was the property prices in markets like Hyderabad (-3.4%) and Chennai (-2.8%).
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 observe consolidation in property prices. The national index during this period has moved from 1117 in March’10 to 1122 in June’10 a near flat growth of just 0.5%. This indicates a short term fatigue in the property prices after an upturn seen earlier in the year. During this period, the index has moved up in markets like Delhi (15.1%), Ahmedabad (10.3%), Kolkata (5.8%) and Hyderabad (2.7%) whereas it has fallen in markets like Chennai (-10.6%), Pune (-8.6%), Mumbai (-4%) & Bangalore (-0.8%).
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. On one hand the property prices have gone-up too much too soon and on the other there is excess supply. Both these are acting like a headwind in the short term. The price movement over the next few months will determine the next definitive trend”.