Property prices in India dropped by 2.8% in January 2012 - says Makaan.com Property Index

Makaan.com Property Index – National

• Monthly Trend: At the National level, the property prices dropped by 2.8% in the last one month.The Index in December 2011 stood at 1466 as against 1426 in January 2012.

• Quarter Analysis: Last quarter saw a dip in MPI figures. It has moved from 1483 in October 2011 to 1426 in January 2012, a drop of 3.8%.

• Year-on-Year Movement: As compared to last year i.e. January 2011, the MPI in January 2012 has moved up by 13.8%. Last January index was at 1253 and in January 2012 the index is at 1426.

Makaan.com Property Index – City level

• Monthly Trends: In the last one month most cities have seen much stability in property prices. The index shows stability in property prices in the key property markets, Delhi, Chennai, Ahmedabad and Hyderabad. Rates at other key markets - Mumbai, Kolkata and Pune registered a drop. Only Bangalore registered a rise in property prices.

• Quarter Analysis: Last quarter, i.e. between October 2011 to January 2012, there are steep downward swings in property prices across the cities. Delhi, Ahmedabad, Bangalore, Chennai, Hyderabad and Pune registered a drop. Property prices remained stable in Mumbai and prices at Kolkata witnessed an increase.

• Year-on-Year Movement: Over the last 1 year, i.e. between January 2011 to January 2012, most cities have seen significant increase in property prices with Kolkata, Chennai and Bangalore registering the maximum appreciation. A drop was registered in Hyderabad property prices while Ahmedabad property prices remained stable.

• 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.