Property prices in Bangalore appreciate by 3.6% in December 2012: Says Makaan.com property index

Makaan.com Property Index – City level

Monthly Trend: The property prices in Bangalore witnessed an appreciation of 3.6% in the last one month. The Index in December 2012 stands at 1296 as against 1251 in November 2012.

Quarter Analysis: Over the last quarter, the MPI has seen a rise of 11.7%; it has moved from 1161 in September 2012 to 1296 in December 2012.

Year-on-Year Movement: As compared to last year, the Bangalore Property Index in December 2012 has seen a rise by 17.9%. The prices have been rising steadily, with minor highs and lows over the last year. The MPI figures have moved up from 1099 in December 2011 to 1296 in December 2012.

City Level: In the last one month most cities have seen an increase in property prices. Property prices in the key property markets: Bangalore, Chennai, Hyderabad and Pune registered an increase. Delhi, Kolkata and Ahmedabad remained stable, while only Mumbai witnessed a depreciation.

Going forward: Indian Real Estate market is going through a challenging phase with multiple macro economic headwinds like poor liquidity for developers, increased cost of construction, high land prices, delayed projects, high interest rates. These factors are keeping the home buyers away from the market. Over the coming months the property prices in India are likely to move in a narrow range with a slight negative bias.