Property prices in India remain stable in August 2011
Makaan.com Property Index – National
- Monthly Trend: At the National level, the property prices remained stable in the last one month. The Index in August 2011 stands at 1513 as against 1514 in July 2011.
- Quarter Analysis: Over the last 3 months, the MPI has seen a small rise - it has moved from 1446 in May 2011 to 1513 in August 2011, a increased by 4.6%.
- Year-on-Year Movement: As compared to last year i.e. August 2010, the MPI in August 2011 has moved up by 27.2%. Prices depreciated 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: The key property markets Mumbai, Chennai, Ahmedabad and Hyderabad registered a drop. At Pune and Bangalore, property prices remained stable. Only in Delhi the property prices saw an appreciation in August.
- Quarter Analysis: Over the last quarter, i.e. between May 2011 to August 2011, there are many steep upward and downward swings in property prices across cities.Property prices in Delhi, Kolkata, Bangalore, Pune and Chennai increased, whereas, Mumbai, Ahmedabad and Hyderabad registered a drop.
- Year-on-Year Movement: Over the last 1 year,i.e. between August 2010 to August 2011, most cities have seen significant increase in property prices. Except for very stable figures in Kolkata, property prices have risen considerably in Delhi, Mumbai, Chennai, Hyderabad, Bangalore, Pune and Ahmedabad. These cities have led the National Index to increased by 27.2% 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: Thu Oct 20 2011