Property prices in Kolkata increase by 4.2% in March 2011 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Kolkata have increased by 4.2% in the last one month. The Index in March 2011 stands at 1142 as against 1096 in February 2011.

• Quarter Analysis: Over the last 3 months, the Kolkata MPI has seen a rise - it has moved from 1092 in December 2010 to 1142 in March 2011, an increase by 4.6%.

• Year-on-Year Movement: As compared to last year, the Kolkata Property Index in March 2011 has dropped by 3.1%. Prices had dropped significantly in the first quarter of 2010 due to the economic slowdown. From thereon, the prices have been rising steadily, with minor highs and lows over the last few quarters.

• City Level: Over the last 1 year,i.e. between March 2010 to March 2011, all the key Indian cities have seen a significant increase in property prices. Ranging between 5.5% to a whopping 50.7%, cities like Mumbai, Delhi, Kolkata, Pune, Hyderabad, Bangalore, Ahmedabad and Chennai registered an increase in property prices over the last 12 months. Kolkata was the only city that saw a drop in property prices in the same period registering a 3.1% drop.

• 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.