Property prices stabilized at National level: Makaan.com Property Index Jan- Mar 2014
The year 2013 saw a cautious approach by property seekers and controlled supply by local and national real estate developers. Sentiments remained subdued and several revival strategies like festive season discounts and inclusion of freebies failed to bring about the desired results. It was a topsy-turvy year for the housing sector and Indian real estate, in general. With the completion of first quarter of 2014, has there been any positive change in order to motivate the home buyers and attract them in the coming months? Makaan.com Property Index [“MPI”] Jan- Mar 2014 projects property prices moving in favour of home buyers.
The race between the cities depicting which city is still showing appreciation in property prices in MPI and which ones have ceased (showing depreciation or stabilization) and are becoming favourable for the home buyers still continues. Let’s us have a look at the MPI for Jan- Mar 2014 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 stabilized trend. The latest figures for Jan- Mar 2014 from the real estate market research and analysis point to a nation-wide increase of only 0.8%. Therefore, the prices for the quarter have gone up by only 0.8%.
- Kolkata, Pune and Delhi show maximum depreciation of 10.0%, 6.3% and 2.5% respectively.
- Bangalore, Chennai and Mumbai show appreciating property prices by 5.3%, 4.6% and 4.3% respectively.
A regional outlook over the 8 most real estate active regions in India:
> The downward trend continues in Delhi, Pune and Kolkata
Over the span of three months, the MPIs for Delhi, Pune and Kolkata display a buyer-attracting trend. The buyers interested in investing in the real estate market of these key property areas should rejoice as Jan- Mar 2014 MPI shows a decrease.
The Delhi MPI has shown a dip of 2.5% over the quarter. This means that this might be the best time for investing in the market. The first quarter 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.
Pune is the city that depicted the second highest increase of 4.6% in property prices in Oct-Dec 2013. Interestingly, the trend has reversed and Jan-Mar 2014 MPI shows major decrease of 6.3% Therefore, the property prices have decreased by 6.3% in Pune.
For Jan-Mar 2014, the Kolkata MPI has broken all records and has confirmed a decrease of a whopping 10.0%. All the three months have shown a decrease from 1623 in Jan 2014 to 1545 in Feb 2014 to 1494 in March 2014.
> Stability gained in Hyderabad and Ahmedabad
The cities that show stabilized MPI over the quarter are Hyderabad and Ahmedabad. The homebuyers 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 Jan-Mar 2014, the Hyderabad MPI shows an increase of only 0.8%. Therefore, the trend for quarter can be said as stabilized and it seems favourable for the home buyers. It will be interesting to see in which direction this marginal increase moves in the coming months.
The Ahmedabad MPI shows an increase of 1.3% over the quarter. The increase is not much as a shift under 2% is generally seen as stabilized.
> Bangalore, Chennai and Mumbai: Increased index
Over Jan-Mar 2014, Bangalore, Chennai and Mumbai saw an increase in property prices. The investors within these cities can wait for some time for the property prices to stabilize or depreciate.
The Chennai MPI shows an increase of 4.6% over the quarter. The MPI figures remained exactly the same for Jan and Feb 2014 and the jump took place between Feb and March 2014. Therefore, overall, the quarter shows an increased index. For Oct-Dec. 2013, the Chennai MPI confirmed a decrease of a 12.6%. There have been major changes going on the property market for the last 6 months; thus, the home buyers should wait for it to be stabilized a bit.
Mumbai is the city that has depicted the third highest increase of 4.3% in property prices in Jan-Mar 2014. Although, there has been a minor decrease from January 2014 to February 2014, 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.