The year 2013 saw a cautious approach by property seekers and controlled supply by local and national real estate developers. Sentiments remained subdued and several revival strategies like festive season discounts and inclusion of freebies failed to bring about the desired results. It was a topsy-turvy year for the housing sector and Indian real estate, in general. With the completion of first quarter of 2014, has there been any positive change in order to motivate the home buyers and attract them in the coming months? Makaan.com Property Index Jan- Mar 2014 projects property prices moving in favour of home buyers.
The race between the cities depicting which city is still showing appreciation in property prices in MPI and which ones have ceased (showing depreciation or stabilization) and are becoming favourable for the home buyers still continues. Letâ€™s us have a look at the MPI for Jan- Mar 2014 at national and city level through the following graphs in which means appreciating property prices and means depreciating property prices. We bet, this is one content where youâ€™ll be on a look out for and not want many as that means high property prices for you!
Areas with depreciating property prices
The National level index provides just the right amount of "push" a buyer needs for investing in real estate and fulfilling the dreams. Prices for property on a National level show a stabilized trend. The latest figures for Jan- Mar 2014 from the real estate market research and analysis point to a nation-wide increase of only 0.8%. Therefore, the prices for the quarter have gone up by only 0.8%.
Under the national category, let us also have a look at a graph showcasing all the cities and the MPI for March 2014, which showcases quite a few of themdepicting a decrease/stabilization in prices:
Kolkata, Pune and Delhi show maximum depreciation of 10.0%, 6.3% and 2.5% respectively.
Bangalore, Chennai and Mumbai show appreciating property prices by 5.3%, 4.6% and 4.3% respectively.
A regional outlook over the 8 most real estate active regions in India
The downward trend continues in Delhi, Pune and Kolkata
Over the span of three months, the MPIs for Delhi, Pune and Kolkata display a buyer-attracting trend. The buyers interested in investing in the real estate market of these key property areas should rejoice as Jan- Mar 2014 MPI shows a decrease
The Delhi MPI has shown a dip of 2.5% over the quarter. This means that this might be the best time for investing in the market. The first quarter of the year has brought good news for the home buyers of the capital as this only means that the coming months might experience a further reduction.
Pune is the city that depicted the second highest increase of 4.6% in property prices in Oct-Dec 2013. Interestingly, the trend has reversed and Jan-Mar 2014 MPI shows major decrease of 6.3% Therefore, the property prices have decreased by 6.3% in Pune.
The Ahmedabad MPI shows an increase of 1.3% over the quarter. The increase is not much as a shift under 2% is generally seen as stabilized.
For Jan-Mar 2014, the Kolkata MPI has broken all records and has confirmed a decrease of a whopping 10.0%. All the three months have shown a decrease from 1623 in Jan 2014 to 1545 in Feb 2014 to 1494 in March 2014.
Stability gained in Hyderabad and Ahmedabad
The cities that show stabilized MPI over the quarter are Hyderabad and Ahmedabad. The homebuyers should be on a look out as the property prices in these regions will probably tend to be stabilized and maintain their high-end investment potential over the next few months.
For Jan-Mar 2014, the Hyderabad MPI shows anincrease of only 0.8%. Therefore, the trend for quarter can be said as stabilized and it seems favourable for the home buyers. It will be interesting to see in which direction this marginal increase moves in the coming months.
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