Property Prices maintaining the downward slide; coming months might bring in further reductions: Makaan.com Property Index Oct-Dec 2013
It has been almost six months now that Makaan.com Property Index [“MPI”] has been confirming that the property prices have started stabilizing or are on a downward trend in major key property markets of India. So, what does the index bring this time for the readers? Are the property prices moving in favour of home buyers? Yes! Should the readers give up the wait and watch policy and start looking for options to build a dream home out of a property? Definitely Yes! But what is the insight coming with the Makaan.com Property Index for the last quarter of 2013?
This time it is a race - a race between the cities depicting which city is still showing appreciation in property prices in MPI and which ones have ceased (showing depreciation or stabilisation) and are becoming favourable for the home buyers.
Let us have a look at the MPI for Oct-Dec 2013 at national and city level through the following graphs in which means appreciating property prices and means depreciating property prices. We bet, this is one content where you’ll be on a look out for and not want many as that means high property prices for you!
Areas with depreciating property prices
The National level index provides just the right amount of "push" a buyer needs for investing in real estate and fulfilling the dreams. Prices for property on a National level show a depreciating trend. The latest figures for Oct-Dec 2013 from the real estate market research and analysis point to a nation-wide decrease of 2.7%. Therefore, the prices for the quarter have gone down by 2.7%.
Under the national category, let us also have a look at a graph showcasing all the cities and the MPI for December 2013, which showcases most of them depicting a decrease in prices:
- Chennai, Ahmedabad and Mumbai show maximum depreciation of 12.6%, 7.8% and 5.0% respectively.
- Bangalore and Pune show appreciating property prices by 5.6% and 4.6% respectively.
A regional outlook over the 8 most real estate active regions in India:
> The downward trend continues in Mumbai, Delhi, Chennai and Ahmedabad
Over the span of three months, the MPIs for Mumbai, Delhi, Chennai and Ahmedabad display a very interesting trend. The buyers interested in investing in the real estate market of these key property areas should rejoice as Oct-Dec 2013 MPI shows a decrease.
The Mumbai MPI shows a major decrease of 5.0% over the quarter. This is a very positive move and the home buyers can hope for a good year ahead.
The Delhi MPI has shown a dip of 4.3% over the quarter. This only means that this might be the best time for investing in the market. The first month of the year has brought good news for the home buyers of the capital as this only means that the coming months might experience a further reduction.
For Oct-Dec. 2013, the Chennai MPI has broken all records and has confirmed a decrease of a whopping 12.6%. All the three months have shown a decrease but the major shift has taken place from November 2013 to December 2013. The figures have decreased from 1563 to 1460.
Ahmedabad is the second city that shows the maximum depreciation of 7.8%. It seems that the maximum property price fall happened between October 2013 and November 2013.
>Kolkata, Bangalore, Hyderabad and Pune: Increased index
Over Oct-Dec. 2013, Kolkata, Bangalore, Hyderabad and Pune saw an increase in property prices. The investors within these cities can wait for some time for the property prices to stabilize or depreciate.
Kolkata saw an increase in the July-Sept 2013 MPI and the trend continues in Oct-Dec 2013. It is the only city that has experienced an increase in the property prices for the last six months. This quarter the property prices have increased by 2.8%.
For Oct-Dec 2013, the Bangalore MPI shows an increase of a good 5.6%. Therefore, the trend for quarter can be said as increased and it does not seem highly favourable for the home buyers.
The Hyderabad MPI shows an increase of 2.7% over the quarter. The increase is not much as a shift under 2% is generally seen as stabilised. It will be interesting to in which direction this just over the margin increase in Oct-Dec 2013 moves in the coming months.
Pune is the city that has depicted the second highest increase of 4.6% in property prices in Oct-Dec 2013. Although, there has been a decrease from November 2013 to December 2013, overall, the quarter shows and increased index.
> Clear Objectives of MPI
Makaan.com Property Index (MPI) is part of MakaanIQ, the research and analysis website of Makaan.com that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry. The index is based on a minimum database size of 20,000 data points every month and the analysis have been drawn over a period starting Jan’09. 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. Utmost care has been taken to give weight age to cities in line with the size of underlying property market.
The MPI is the most up-to-date sample of residential property asking prices. The index monitors changes in house prices monthly, annually and yearly, providing a comprehensive view on the present state of the property market in India.
Be on the lookout for Makaan.com Property Index to make your move in the real estate market can be very valuable indeed, as it is updated every month and carries substantial and reliable data. MPI is as good as an encyclopedia for the real estate industry bases its findings on extensive property market research and analysis. For details check MPI or log on to MakaanIQ.