Property prices in India see a marginal drop of 2% in April 2010 says Makaan.com Property Index (MPI)
Empowering homebuyers and industry players through Makaan.com Property Index
Makaan.com, India’s fastest growing online real estate website by People group has launched country’s first Property Index. Christened Makaan.com Property Index (MPI) the tool is aimed at empowering homebuyers and industry players with up-to date information related to movement in residential property prices. This tool will assist the homebuyers to make an informed decision, when he/she heads out to buy their dream home. MPI aims to provide a direction to the buyer so that they invest their hard earned money in the right manner.
- Makaan.com Property Index (MPI) is part of a bigger initiative known as MakaanIQ that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry.
Makaan.com Property Index Methodology
Coverage: Makaan.com Property Index tracks property price trends nationally and for major metros and tier II cities of India.
Frequency: Monthly – Starting Jan 2009.
Database: This index is based on minimum database size of 20,000 data points every month and the analysis has been drawn over a period starting Jan’09. The prices of properties are obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force.
- Index Algorithm: The complex algorithm takes into account the property prices as base and then factors in the demand and supply of residential properties for each of the cities covered by it. Care has been taken to give weight age to cities in line with the size of underlying property market.
Makaan.com Property Index – National
Monthly Trend: At the National level, the property prices gone down marginally in the last month. The Index in April 2010 stands at 1098, 2% lower than March 2010 when the MPI was 1117.
Quarter Analysis: Over the last 3 months, the MPI has been relatively stable - it has moved from 1080 in the beginning of 2010 to 1095 in April 2010, a 1.3% increase. The months of February & March saw some price increments, followed by a decrease in April, taking the MPI closer to January 2010 levels.
Year-on-year movement: As compared to last year i.e. April 2009, the MPI in April 2010 has moved up by 13%. Nationally the Realty sector is seeing better days in the first half of 2010 as against the severe drops in prices and investor / buyer optimism that was witnessed a year back.
Makaan.com Property Index – City level
Monthly Trends: In the last one month – Delhi, Ahmedabad and Bangalore have seen a rise in real estate prices. Delhi has seen the highest upward rally (10%), followed by Ahmedabad (8.2%); Bangalore noted modest 2% increase. In the same period, i.e. between March 2010 and April 2010, the property markets of Mumbai, Hyderabad, Chennai, Pune have seen the property prices going down by 9.6%, 3.4%, 3% and 1.8% respectively. The prices in Kolkata have remained largely unmoved over the last month
Quarter Analysis: Over the last quarter, i.e. between January to April 2010, property prices Nationally have been relatively stable; the National MPI rose marginally by 1.3%. In the same period, Hyderabad saw a steep price correction (8%) followed by Chennai (6.3%), Bangalore (2.8%) and Mumbai (1.5%). Other cities have seen substantial increase in property prices – Ahmedabad (22.8%), Kolkata (14.2%), Pune (13%), Delhi (4.8%).
Year-on-Year Movement: Over the last 1 year, i.e. between April 2009 to April 2010, most cities have seen significant increases in property prices. Kolkata and Ahmedabad have seen very steep price increases – upwards of 40%. Pune, Delhi, Mumbai – the large real estate markets have also seen 14-20% price increases. In comparison to these, Bangalore has seen modest price improvements – 2.2%. These cities have led the National Index to move up by 12.9% in the last 1 year. Hyderabad, and Chennai have seen a reduction in property prices in the same period
Going Forward: The stock market have been volatilie in the last few weeks due to the eurozone’s economic problems, which seems likely to continue for some time. On the other hand - the signals from the Indian Economy are quite positive - Industrial output, Exports and the GDP are rising, and jobs are more secure than before. In the current situation one would expect the realty sector to maintain stability of prices.