Property prices in Chennai drop by a modest 2.8% 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 Chennai have dropped by a marginal 2.8% in June’10 compared with the same month last year. The index for the month of June stood at 1015 vis- a- vis 1045 a year ago. Over the past one year, the property prices have moved in an extremely narrow range for most southern Indian cities including Chennai. 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. The modest drop in the Chennai index can be attributed to the near flat property prices in the underlining markets of North, Central and South Chennai.

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 continues to observe a negative movement in property prices. The Chennai index during this period has moved from 1136 in March’10 to 1015 in June’10 a drop of 10.6%. This indicates that the prices that showed an upward movement from Dec’09 to Feb’10 were unable to hold on to the gains in the subsequent months. When it comes to other major cities, the quarterly index has moved up in markets like Delhi (15.1%), Ahmedabad (10.3%), Kolkata (5.8%) and Hyderabad (2.7%) whereas it has fallen in markets like 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.