Property prices in Kolkata depreciate by 6.4% in May 2011 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Kolkata have dropped by 6.4% in the last one month. The Index in May 2011 stands at 1007 as against 1076 in April 2011.

• Quarter Analysis: Over the last 3 months, the MPI has seen a drop of 4.3% - it has moved from 1052 in February 2011 to 1007 in April 2011.

• Year-on-Year Movement: As compared to last year, the Kolkata Property Index in May 2011 has decreased by 16.5%. Prices have 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 May 2010 to May 2011, most cities have seen significant increase in property prices. Except for a property price drop in Kolkata, all the other major cities have registered a considerable rise in property prices. Property price increase in these cities have led the National Index to increased by 26.4% over the last 1 year.

• Going forward: Indian Real Estate 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.