Property prices in Bangalore increase by 0.2% in March 2011 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Bangalore have increased by a marginal 0.2% in the last one month. The Index in March 2011 stands at 993 as against 991 in February 2011.

• Quarter Analysis: Over the last 3 months, the Bangalore MPI has seen a rise - it has moved from 890 in December 2010 to 993 in March 2011, an increase by 11.6%.

• Year-on-Year Movement: As compared to last year, the Bangalore Properties Index in March 2011 has increased by 5.5%. 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.