Property prices in India show a modest gain of 0.8% in March 2010 says Makaan.com Property Index (MPI)
Empowering homebuyers and industry players through Makaan.com Property Index
1. 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.
2. 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
3. Coverage: Makaan.com Property Index tracks property price trends nationally and for major metros and tier II cities of India.
4. Frequency: Monthly – Starting Jan 2009.
5. 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.
6. 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
1. Monthly Trend: At the National level, the property prices have not moved in the last month. The Index in March 2010 stands at 1117, just 0.8% higher than February 2010 when the MPI was 1108.
2. Quarter Analysis: Over the last 3 months, the MPI has been relatively stable - it has moved from 1128 in December 2009 to 1117 in March 2010, a 1% drop. The month of January saw some price correction post the rally in end 2009, followed by a slight increase in February, taking the MPI closer to December 2009 levels.
3. Year-on-year movement: As compared to March 2009, the MPI in March 2010 has moved up by 17%. Nationally the Realty sector is seeing better days in the first quarter of 2010 as against the severe drops in prices and investor / buyer optimism that was witnessed a year back.
4. City level: At the city level, Ahmedabad, Pune and Delhi have seen an improvement in property prices month-on-month – 9.8%, 5.2%, 4.0% respectively. At the same time, Hyderabad & Chennai has registered a 7.5% and 4.7% drop in the same period. Mumbai and Bangalore have been relatively stable in the same period – with 0.6% and 0.7% drops respectively.
5. Going Forward: The signals from the economy are quite positive - the Budget for FY2011 has been received positively, there is overall optimism in all sectors, job visibility is better among the salaried class. And the Realty sector is seeing the effects of this in the form of new launches across cities and higher buyer traffic. One would hope and expect these to help the volatile realty sector to stabilize in the coming months.