Property prices in Chennai appreciate by 4.7% in June 2011

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Chennai increased by 4.7% in the last one month. The Index in June 2011 stands at 1554 as against 1485 in May 2011.

• Quarter Analysis: Over the last 3 months, the MPI has seen an increase of 8% - it has moved from 1436 in March 2011 to 1554 in May 2011.

• Year-on-Year Movement: As compared to last year, the Chennai Properties Index in June 2011 has increased by a whopping 53%. Prices had dropped significantly in the second 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 June 2010 to June 2011, most cities have seen significant increase in property prices. Except for Kolkata, all other major cities, Delhi, Mumbai, Pune, Bangalore, Chennai, Ahmedabad, Hyderabad witnesses a very steep increase in property prices. These cities have led the National Index to increased by 33% over the last 1 year.

• Going forward: Real estate India 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.