Property Prices see an Upward trend: Makaan.com Property Index Apr- Jun 2014
Property investors and real estate industry players can take a sigh of relief as the property prices in India have shown a reasonable uptrend in the last quarter. Many cities such as Hyderabad, Pune, Chennai and Mumbai have seen a substantial rise in the real estate prices. Though in many places like Bangalore and New Delhi the sentiments remained subdued. Makaan.com Property Index [“MPI”] Apr-Jun 2014 projects property prices in most of the cities moving in favor of home buyers.
This quarters' MPI is interesting to analyze as many cities like Pune and Bangalore have shown reverse property trends. On an annualized basis, the property index of all the main cities continue to show a downward trend. If one looks at the year-on-year trend and compare the property prices of June 2013 v/s June 2014, we observe that the national index has depreciated by almost 4%. Lets take an insight into the MPI for Apr-Jun 2014 at national and city level, through the following graphs we will help you to understand which cities are ripe for investment quarterly!
Upward trend in Hyderabad, Pune, Chennai and Mumbai
In the last quarter the cities of Hyderabad, Pune, Chennai and Mumbai have seen a rise in the real estate prices.
The Hyderabad MPI for Arp-Jun2014, shows an massive increase of 8.5%, this news will bring some smiles on the faces of real estate developers as the real estate market of Hyderabad was seeing stagnation of prices owing to confusion over bifurcation of the state.
For Arp-Jun2014, the Pune MPI shows an increase of 4.6%. In the last quarter the MPI had decreased by 6.3% and it seems that this quarter has been favorable for real estate developers.
The cities of Chennai and Mumbai have also shown a considerable appreciation in property prices. The rates of properties in Chennai and Mumbai have shown an increase of 4.0% and 2.5% respectively.
Hyderabad, Pune, Chennai, Mumbai and Ahmedabad show appreciating property prices by 8.5%, 4.6%, 4.0%, 2.5% and 1.5% respectively.
A regional outlook over the 8 most real estate active regions in India:
Areas with depreciating property prices
The National level the MPI index shows stability which means that it is the right time for a buyer to invest in real estate. The latest figures for Arp-Jun2014 from the real estate market research and analysis point to a nation-wide decrease of only 0.6%. Therefore, the prices for the quarter have gone down by only 0.6%. Under the national category, let us also have a look at a graph showcasing all the cities and the MPI for June 2014, which showcases quite a few of them depicting a decrease/stabilization in prices:
Bangalore, Delhi and Kolkata show maximum depreciation of 10.8%, 6.5% and 1.1% respectively.
The downward trend continues in Bangalore and Delhi
Over the span of three months, the MPIs for Bangalore and Delhi display a buyer-attracting trend. The buyers interested in investing in the real estate market of these key property areas should rejoice as Arp-Jun2014 MPI shows a decrease.
Bangalore is the city that depicted an increase of 5.3% in property prices in Jan-Mar 2014 sees an reversed trend as the Arp-Jun2014 MPI shows a whopping decrease of 10.8%.
The Delhi MPI has shown a dip of 6.5% over the quarter. This means that this might be the best time for investing in the market. The second quarter of the year has brought good news for the home buyers of the capital city as this only means that the coming months might experience a further reduction.
Stability gained in Ahmedabad and Kolkata
The cities that show stabilized MPI over the quarter are Ahmedabad and Kolkata. The home buyers should be on a look out as the property prices in these regions will probably tend to be stabilized and maintain their high-end investment potential over the next few months.
For Arp-Jun2014, the Kolkata MPI shows an decrease of only 1.1%. Therefore, the trend for quarter can be said as stabilized and it seems favorable for the home buyers. It will be interesting to see in which direction this marginal decrease moves in the coming months.
The Ahmedabad MPI shows an increase of 1.5% over the quarter. The increase is not much as a shift under 2% is generally seen as stabilized.