Property Prices in hyderabad gain by 5.1% in January 2010 says Makaan.com Property Index (MPI)

Empowering homebuyers and industry players through Makaan.com Property Index

1. 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 dream home. MPI aims to provide a direction to the buyer so that they invest their hard earned money in the right manner.

2. 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

3. Coverage:    Makaan.com Property Index tracks property price trends nationally and for major metros and tier II cities of India.

4. Frequency: Monthly – Starting Jan 2009.

5. 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.

6. 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.

Makaan.com Property Index – Hyderabad

Monthly Trend: The Hyderabad MPI in January 2010 stands at 970, a 5.1% jump from December 2009 when it stood at 923.  This indicates some firming up of property price in Hyderabad.

Quarter Analysis:  The Hyderabad MPI in the last 3 months shows a flattish trend. People have adapted a wait and watch approach due to the ongoing Talengana issue. In October 2009, the MPI was at 907 and moved in a very narrow range. It moved to 970 in January 2010 indicating 6.9% quarter-on-quarter increase.

Year-on-year movement: The MPI in Hyderabad has lost 30 points over the past 12 months, this denotes a 3% year-on-year drop in property prices. The yearly movements in the MPI for Hyderabad beautifully depict the sentiment in the real estate sector over the last one year. As per the Index, Hyderabad market experienced correction in property prices for the first nine months of 2009. Thereafter the local factors prevented the property prices from improving. Currently we are seeing price stability and the index movement over the next 2-3 months would decide the future trend.

National Index: Between December 2009 and January 2010, the National Index saw a drop of 4.3%, driven by the steep 10% drop in Mumbai and a small 3% drop in Delhi. Hyderabad property prices have defied the national price movement in the months of January 2010.

Going Forward: The Hyderabad property market has seen price stability over the past 12 months. One needs to see how the property seekers and suppliers react to the Budget in March, which has given an additional Rs. 50,000 p.a. in the hands of the homebuyers through tax savings and has also extended the 1% subsidy on interest rate for housing loans upto 10 lacs.