Property prices in Ahmedabad increased by 8.7% in October 2010 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: In the last one month, Ahmedabad has registered an increase in property prices. The Ahmedabad index for October 2010 stands at 1771 as against 1629 in September 2010, a 8.7% in the last 30 days.

• Quarter Analysis: Over the last 3 months, the MPI for Ahmedabad has seen a rise. It has moved from 1544 in July 2010 to 1771 in October 2010, a 14.7% increase.

• Year-on-Year Movement: As compared to last year i.e October 2009, the Ahmedabad MPI in October 2010 has moved up by a whopping 65.1%. Prices had dropped significantly in the second quarter of 2009 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 October 2009 to October 2010, some cities have seen significant increase in property prices. Ahmedabad East, Delhi and Kolkata saw prices increase by 65.1%, 31.5%, 26.2% respectively. Other cities that also saw rise in prices are Pune, Hyderabad and Bangalore. Prices in these cities went up by 9.2%, 6.8% and 0.2% respectively. On the other hand Chennai and Mumbai saw decrease in property prices by 12.4% and 5.5% respectively. These cities have led the National Index to increase by 6.6% 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.