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Makaan.com Buy Vs Rent Index (MBRI) - allows you to choose between buy and rent a property.

Makaan.com Buy Vs Rent Index (MBRI) - allows you to choose between buy and rent a property.

Makaan.com Buy Vs Rent Index (MBRI) - allows you to choose between buy and rent a property.

Buying a house or to stay on rent is a decision that is taken after much contemplation. Often home buyers turn to guidance from experts in the field or elders for a solution. Makaan.com brings you a robust and reliable tool – Makaan.com Buy Vs Rent Index (MBRI), that helps decide whether to purchase a house or to stay on rent. The MBRI for the period July to September 2011 highlights some interesting findings for top Indian cities/sub cities.

MBRI analysis for top Indian Cities


How to interpret MBRI?

MBRI of 1-20: This denotes that it is much less expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to buy a property than staying on rentals.

MBRI of 21-25: This denotes that it is relatively more expensive to buy a home than to stay on rental, in these cities / sub-cities. This is a neutral range and property seekers looking at investing here are advised to take the final decision based on their financial situation.

MBRI of 25+: This denotes that it is much more expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to rent a property rather than buying.


Analyzing the MBRI data, the cities in South India namely, Bangalore, Chennai and Hyderabad prove to be the best investment destinations with figures 20, 18 and 18 respectively. Cities in North still remain expensive with Delhi on 29, Ahmedabad on 26, Pune on 25 and Mumbai on 26. Localities in Mumbai remain expensive, with localities, Mumbai Andheri- Dahisar, Mumbai Beyond Thane, Mumbai Harbour on neutral side. In Delhi NCR region, only Faridabad, Gurgaon and Noida are favourable for home buyers.

When compared with the last Quarter i.e April - May - June 2011, most Indian cities have not shown very drastic fluctuation in terms of MBRI values. Makaan Buy vs. Rent index is a quarterly initiative and will be updated every 3 months. The detailed findings can also be accessed at www.makaan.com/MBRI


MBRI Methodology

Coverage - Each city is divided in sub-cities (micro-markets) and micro-markets into localities. Prices of properties are obtained across micro-markets through listings on makaan.com as well as makaan.com’s nationwide sales force

Database - The current Index comes from 32 micro-markets across the above cities. The Index is based on minimum database size of 20,000 data points every month.

New & Resale properties - The MBRI database includes a good representation of new as well as resale properties. Most reports on the property sector today are based on new developments, whereas actually new properties are relatively small % of the supply with resale being the majority of supply.

Index algorithm - The Index is calculated quarter-on-quarter for each of the above cities & sub-cities. It is a derived index using an advanced algorithm which factors in the average value of properties available for sale and rent.


Selection of cities for MBRI

Coverage - The MBRI covers Ahmedabad, Bangalore, Chennai, Delhi/NCR, Hyderabad, Mumbai and Pune. Other cities may be added in subsequent issues. These cities account for over 80% of the Indian Real Estate market.

Factors that have been taken into consideration while selecting the cities:

Population – The real estate sector is dependent on the demand of houses, which in turn is dependent on the population. Populous and ever growing urban agglomerates like Mumbai and NCR have an ever growing demand for housing.

Economic Importance – Cities which are hubs of certain industries have constant influx immigrants from across the country, which also creates a strong demand for housing – beyond the needs of the resident populations – e.g. Bangalore, Pune. Hence such cities have also been included.

Last Updated: Mon Sep 09 2013

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