Property prices in Mumbai dropped by 5.7% in January 2012 - says Makaan.com Property Index

Makaan.com Property Index – City level

• Monthly Trend: The property prices in Mumbai have dropped by 5.7% in the last one month. The Index in January 2012 stands at 1439 as against 1526 in December 2011.

• Quarter Analysis: Over the last 3 months, the MPI shows stability in Mumbai market - it has moved from 1464 in October 2011 to 1439 in January 2012.

• Year-on-Year Movement: As compared to last year, the Mumbai Property Index in January 2012 has increased by 10.4%. The MPI figure was at 1304 last January, and has risen up to 1439 in January this year.

• City Level: In the last one month most cities have seen much stability in property prices. The index shows stability in property prices in the key property markets, Delhi, Chennai, Ahmedabad and Hyderabad. Rates at other key markets - Mumbai, Kolkata and Pune registered a drop. Only Bangalore registered a rise in property prices.

• 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.