Empowering homebuyers and industry players through Makaan.com Property Index
Makaan.com, India’s fastest growing online real estate website by People group has launched country’s first Property Index. Christened Makaan.com Property Index (MPI) the tool is aimed at empowering homebuyers and industry players with up-to date information related to movement in residential property prices. This tool will assist the homebuyers to make an informed decision, when he/she heads out to buy their dreamhome. MPI aims to provide a direction to the buyer so that they invest their hard earned money in the right manner.
Makaan.com Property Index (MPI) is 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.
Makaan.com Property Index Methodology
Coverage: Makaan.com Property Index tracks property price trends nationally and for major metros and tier II cities of India.
Frequency: Monthly – Starting Jan 2009.
Database: This index is based on minimum database size of 20,000 data points every month and the analysis has been drawn over a period starting Jan’09. The prices of properties are obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force.
Index Algorithm: The complex algorithm takes into account the property prices as base and then factors in the demand and supply of residential properties for each of the cities covered by it. Care has been taken to give weight age to cities in line with the size of underlying property market.
As per the latest release of Makaan.com Property Index (MPI), real estate prices in Kolkata have grown by a whopping 50.7% in June’10 compared with the same month last year. The index for the month of June stood at 1247 vis- a- vis 827 a year ago. This is the maximum % increase reported by any city in India. 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 Kolkata index can be attributed to the hardening of property prices in the underlining markets of South and East Kolkata. The property price appreciation in these markets was higher or in line with the Kolkata city average. Other popular markets like North Kolkata saw an appreciation lower than the city average.
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 would observe consolidation in property prices. The Kolkata index during this period has moved from 1179 in March’10 to 1247 in June’10 a small appreciation of 5.8%. This indicates a short term fatigue in the property prices after an upturn seen earlier in the year. When it comes to other major cities, in the last one quarter, the index has moved up in markets like Delhi (15.1%), Ahmedabad (10.3%), 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, “In the near term the mood seems to be that of caution. 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.
