Property prices in Delhi grow by 41.7% in the last one year - says Makaan.com Property Index
As per the latest release of Makaan.com Property Index (MPI), real estate prices in Delhi have grown by 41.7% in June’10 compared with the same month last year. The index for the month of June stood at 1158 vis- a- vis 817 a year ago. The trend for June’10 deserves a special mention as it was around this time last year that the property prices started to look up after 9 months period (Oct’09 to June’09) of continues decline caused by global meltdown.
The rise in the Delhi index can be attributed to the hardening of property prices in the underlining markets of Faridabad, South Delhi, Gurgaon, Dwarka and East Delhi which have appreciated by 70%, 47%, 39%, 22% and 21% respectively over the last 12 months. The prices have remained stable in Ghaziabad, Greater Noida and North Delhi whereas there has been a fall in property prices in markets like West Delhi (-16%) & Noida (-11%). Overall Delhi property market has been among the best performing property markets in India.
If one were to look at the short term (quarterly) trend and compare the price index for June’10 with that of March’10, one observes hardening of property prices here as well. The Delhi index during this period has moved from 1005 in March’10 to 1158 in June’10 an appreciation of 15.1%. This is the highest property price appreciation by any city in India over the last three months. When it comes to other major cities the index has moved up in markets like Ahmedabad (10.3%), Kolkata (5.8%) and Hyderabad (2.7%) whereas it has fallen in markets like Chennai (-10.6%), Pune (-8.6%), Mumbai (-4%) & Bangalore (-0.8%).
Commenting on the findings, Aditya Verma – COO, Makaan.com says, “Delhi property prices have moved up at a rapid pace keeping many home buyers at bay. The un-expected fast run-up has lead to a mood of caution & dis-belief. The home buyers seem to be in a wait and watch approach. The price movement over the next few months will determine the next definitive trend”.
Makaan property index is a part of a bigger initiative known as MakaanIQ that has been bringing out property intelligence & research reports for the benefit of homebuyers and real estate industry.