Property prices in India remained stable in December 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 December 2011 stands at 1466 as against 1469 in November 2011.
- Quarter Analysis: Over the last 3 months, MPI has seen a small drop - it has moved from 1507 in September 2011 to 1466 in December 2011, a drop of 2.7%.
- Year-on-Year Movement: As compared to last year i.e. December 2010, the MPI in December 2011 has moved up by 19.2%.Prices had dropped significantly in the second quarter of 2010 due to 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 one month most cities have seen much stability in property prices. Property prices in the key property markets, Mumbai, Delhi, Chennai and Pune remained stable. Bangalore, Hyderabad and Ahmedabad registered a drop. Only Kolkata registered an increase.
- Quarter Analysis: Over the last quarter, i.e. between September 2011 to December 2011, there are downward swings in property prices across the cities. Delhi, Ahmedabad, Bangalore, Hyderabad and Pune registered a drop where as only Kolkata and Chennai registered a rise. Property prices in Mumbai remained stable.
- Year-on-Year Movement: Over the last 1 year, i.e. between December 2010 to December 2011, most cities have seen significant increase in property prices with Kolkata, Chennai and Bangalore registering the maximum appreciation. A drop was registered in Ahmedabad property prices while Hyderabad property prices remained stable.
- 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