Property prices in Pune appreciates by 12.4% - says Makaan.com Property Index (MPI)
A potential drop in property prices in Pune has been a topic of debate and discussion for the past few months, but the latest release of Makaan.com Property Index (MPI) actually negates this point of view. As per the latest release of Makaan.com Property Index (MPI) for October 2011, the property prices in Pune have actually appreciated by 12.4% in the last three months. The Pune property index for October month stood at 1578 compared with 1404 in the month of July 2011. The appreciation in prices does not seem to be a short term phenomenon as Pune market has registered a price appreciation over the past 12 months period as well. The Pune property index was at 1137 in October 2010 compared to 1578 in October this year, indicating a jump of 38.8%.
If one were to analyze the property prices trends in other Indian cities (over the past three months), one observes that cities like Kolkata, Chennai & Delhi have shown an appreciation of 17.4%, 9.1% and 4.2% respectively. Bucking the trend are the property prices in cities like Hyderabad, Bangalore, Mumbai and Ahmedabad that have registered a fall of 21.6%, 7.8%, 5.6% and 2.8% respectively, during the same period. At the National level, the MPI has remained stable at 1483 compared with 1495 in the corresponding month last quarter, which is a small drop of 0.8%.
Commenting on the findings Aditya Verma, EVP & COO, Makaan.com says, “Indian market is undergoing a short term correction in property prices which is actually healthy for the market. This will lead to some revival of buying interest. Pune is able to buck the trend due to continued inflow of IT talent from all over the country which is fuelling the property boom. We expect the prices to remain range bound over the medium term (6-9 months). A meaningful revival is expected only by July-Sept 2012 when price correction will be additionally supported by softening of home loan rates.”