Property prices in Chennai rise by modest 1% in July 2010 - says Makaan.com Property Index

Posted on September 7, 2010

Monthly Trend: The property prices in Chennai have increased by a marginal 1% in the last one month. The Index in July 2010 stands at 1025 as against 1015 in June 2010.

Quarter Analysis: Over the last 3 months, the MPI has seen a drop - it has moved from 1101 in April 2010 to 1025 in July 2010, a 6.9% decrease.

Year-on-year movement: As compared to last year i.e. July 2009, the Chennai Property Index in July 2010 has decreased by 10.7%. Prices had dropped significantly in the second quarter of 2009 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 July 2009 to July 2010, most cities have seen significant increases in property prices. Kolkata, Ahmedabad & Delhi have seen price increases upwards of 30%. Pune and Mumbai have also seen 10-14% price increases. These cities have led the National Index to move up by 12.2% over the last 1 year. In comparison to these, Chennai and Bangalore has seen price drop by 10% and 7.4% respectively however property prices in Hyderabad have remained stable.

Going Forward: The signals from the Indian Economy are quite positive - Industrial output, Exports and the GDP are rising, and jobs are more secure than before. At the same time interest rates are likely to go up, which may make buyers cautious in their purchase decisions. In the current situation one would expect the realty sector to maintain stability of prices.