Property prices in India remain stable in February 2013 - Says Makaan.com Property Index
Makaan.com Property Index – National
Monthly Trend: At the National level, the property prices remained stable in the last one month. The Index in February 2013 stands at 1538 as against 1518 in January 2013.
Quarter Analysis: Over the last 3 months, the MPI Figure has seen an appreciation of 4.2%; it has moved from 1477 in November 2012 to 1538 in February 2013.
Year-on-Year Movement: As compared to last year i.e. February 2012, the MPI in February 2013 has appreciated by 6.3%. Prices have been rising steadily, with minor highs and lows over the last year. The MPI figure in February 2012 was at 1447 and has moved to 1538 in February 2013.
Makaan.com Property Index – City level
Monthly Trends: In the last one month, the cities across the country have seen a mixed appreciation and stability in property prices. Property prices in the key property markets of Mumbai, Chennai and Hyderabad registered an increase. Delhi and Pune have registered a decrease in property prices; while those in Kolkata, Bangalore and Ahmedabad remained stable.
Quarter Analysis: Over the last quarter, i.e. from November 2012 to February 2013, there are mixed upwards and downward swings in property prices across the cities. Only Delhi registered a drop whereas Mumbai, Bangalore, Chennai, Hyderabad and Pune registered a rise. The property prices in Kolkata and Ahmedabad remained stable.
Year-on-Year Movement: Over the last one year, i.e. between February 2012 to February 2013, most cities have seen an appreciation in property prices. Mumbai, Bangalore, Ahmedabad, Hyderabad and Pune registered a significant appreciation; whereas Kolkata and Chennai remained stable. A drop was registered only in Delhi's property prices.
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.