Property prices in India remain stable in November 2011 - 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 November 2011 stands at 1469 as against 1483 in October 2011.
- Quarter Analysis: Over the last 3 months, the MPI has seen stability and has moved from 1487 in August 2011 to 1469 in November 2011, a meager decline of 1.18%.
- Year-on-Year Movement: As compared to last year i.e. November 2010, the MPI in November 2011 has moved up by 20%. Prices dropped 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.
Makaan.com Property Index – City level
- Monthly Trends: In the last month most cities have displayed varying trends in property prices. Property prices in Chennai remained stable; Kolkata and Mumbai registered an appreciation, whereas Delhi, Bangalore, Hyderabad, Pune and Ahmedabad registered a drop.
- Quarter Analysis: Over the last quarter, i.e. between August 2011 to November 2011, there are many steep upward and downward swings in property prices across cities. Property prices in key markets, Delhi, Bangalore, Ahmedabad and Hyderabad saw a decline in property prices, whereas Kolkata, Chennai and Pune witnessed an increase. Prices in Mumbai remained stable.
- Year-on-Year Movement: Over the last 1 year, i.e. between November 2010 to November 2011, all the cities saw a significant increase in property prices. Bangalore, Chennai and Pune witnessed maximum appreciation.
- 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 Feb 17 2012