Rapid urbanization, sound economy and improved infrastructure, make cities a favorite dwelling option. With the recovering market and new projects in store, the inhabitants here end up in utter confusion on whether to stay on rent or to use the rental amount as EMI to buy a home. At times he feels staying on rent is far economical but at times he is drawn by the sentiments of owning a home. The high property prices, increasing home loan rate, and innumerable projects puts him in deep contemplation. In the absence of a robust and reliable tool, these decisions were traditionally taken with gut feel or with the guidance of a close relative / friend, leaving a great scope for error. To help out such property seekers Makaan.com launched Makaan.com Buy Vs Rent Index (MBRI), a tool that aims to help property seekers make informed choice between buying and renting of property in top Indian cities / sub-cities home.

The latest Makaan.com Buy Vs Rent Index (MBRI) for the period January to March 2012 for Chennai was released today. For better analysis, Chennai is divided into 2 sub-cities and MBRI is calculated for each sub-city to enable seekers make informed choice in their respective areas of interest. The index for the city of Chennai has moved from 21 in the last quarter of 2011 to 22 in Jan-March 2012, which is the Neutral zone. This means that property seekers in Chennai can decide to Buy or Rent based on their current liquidity situation. Overall a lower MBRI (less than 20) indicates a preference for Buying Vs Renting and a higher MBRI (higher than 25) indicates a preference for Renting Vs Buying. MBRI of 21-25 is the neutral range.

Makaan.com’s analysis for Chennai are given below.

Chennai gained one MBRI point during the last quarter but still remains in the neutral zone on Makaan.com Buy Vs Rent Index. Chennai North dropped 4 MBRI points to 21 till the end of last quarter. This shift shows a relatively higher softening of property rates compared with rentals in the area. Chennai South on the other hand moved 5 MBRI points to 23 shifting it from Buying destination to a neutral destination.