Property prices in Mumbai depreciate by 3.5% in August 2011
Makaan.com Property Index – City level
- Monthly Trend: The property prices in Mumbai dropped by 3.5% in the last one month. The Index in August 2011 stands at 1496 as against 1551 in July 2011.
- Quarter Analysis: Over the last 3 months, MPI has seen a drop of 5.5% - it has moved from 1583 in May 2011 to 1496 in August 2011.
- Year-on-Year Movement: As compared to last year, the Mumbai Property Index in August 2011 has increased by 17.9%. Prices had 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 over the last 3 quarters.
- City Level: Over the last 1 year,i.e. between August 2010 to August 2011, most cities have seen significant increase in property prices. Except for very stable figures in Kolkata, property prices have risen considerably in Delhi, Mumbai, Chennai, Hyderabad, Bangalore, Pune and Ahmedabad. These cities have led the National Index to increased by 27.2% over the last 1 year.
- 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: Thu Oct 20 2011