Property prices in Kolkata drop by 10.4% in December 2010 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Kolkata have dropped by 10.4% in the last one month. The Index in December 2010 stands at 1092 as against 1219 in November 2010.

• Quarter Analysis: Over the last 3 months, the Kolkata MPI has seen a drop- - it has moved from 1124 in September 2010 to 1092 in December 2010, a 2.8% drop.

• Year-on-Year Movement: As compared to last year, the Kolkata Property Index in December 2010 has increased by 5.6%. Prices had dropped significantly in the fourth quarter of 2010 due to the economic slowdown. From thereon, the prices have been rising steadily, with minor highs and lows over the last 3 quarters.

• City Level: Over the last 1 year,i.e. between December 2009 to December 2010, most cities have seen significant increase in property prices. Cities like Ahmedabad, Delhi, Pune, Hyderabad, Kolkata and Mumbai saw prices go up by a whopping 66.8%, 30%, 13.6%, 11.5%, 5.6% and 0.5% respectively. While Bangalore and Chennai saw property prices decrease by 9.1% and 6.5% in the same period. These cities led the national index increase by 9%% over the last 1 year.

• Going forward: The signals from the Indian Economy are quite positive - Industrial output, Exports and the GDP are rising, and jobs are more secure than before.At the same time interest rates are likely to go up, which may make buyers cautious in their purchase decisions.In the current situation one would expect the realty sector to maintain stability of prices.