Property prices in India remained stable in February 2012 - says Makaan.com Property Index

Makaan.com Property Index – National

• Monthly Trend: At the National level, the property prices remained stable in the last one month.The Index in February 2012 stands at 1447 as against 1426 in January 2012.

• Quarter Analysis: Over the last 3 months, the MPI figures have remained stable - it has moved from 1469 in November 2011 to 1447 in February 2012, a small drop of 1.5%.

• Year-on-Year Movement: As compared to last year i.e. February 2011, the MPI figure in February 2012 has moved up by 7.4%. The MPI index has moved from 1347 in February 2011 to 1447 in February 2012.

Makaan.com Property Index – City level

• Monthly Trends: In the last one month most cities have seen stable property prices. Property prices in key markets - Mumbai, Bangalore, Chennai, Ahmedabad, Hyderabad and Pune have remained stable. Only Delhi and Kolkata registered a slight appreciation.

• Quarter Analysis: Over the last quarter, i.e.between November 2011 to February 2012, the key property markets have seen a downward trend. Property prices in Mumbai, Ahmedabad, Hyderabad and Pune have dropped while Chennai, Bangalore and Kolkata remained stable. Delhi registered a property price increase.

• Year-on-Year Movement: Over the last 1 year,i.e. between February 2011 to February 2012, most cities have seen significant increase in property prices, with Kolkata with maximum appreciation. Mumbai, Chennai, Bangalore, Delhi and Mumbai are other cities that saw property price appreciation. The Hyderabad market has witnessed a drop while property prices in Ahmedabad remains 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.