December 2011: The National Property Index (NPI) rose by 7% in the second quarter of FY 2011-12. In its second edition report, the India apartment Index showed a rise in capital and rental values across metros. The number of listings of property also increased significantly in this period. This is a healthy 4% increase in the Jul-Sep 2011 quarter compared to Apr-Jun 2011 quarter.
Of the 11 cities covered in the India Apartment Index, 9 posted an increase in index values. Delhi, Chennai and Ghaziabad, were frontrunners with a 9% rise. Noida was at second spot, with an 8% increase, followed be Bangalore and Hyderabad (5%). Mumbai, Gurgaon and Pune posted moderate rise of 1-2% , below the national index values. Ahmedabad index value dropped 5% on the back of falling values in some key locations, while Kolkata remained stable during this quarter with no change in the index value.
Capital values rose in over 50% of localities across cities during the period. However, only 3 out of 11 cities showed a similar trend in rental values.
The key findings of the report are:
- Limited supply of new projects across markets due to tight monetary conditions
- High quoted prices led users to go slow on investment decisions)
- Rise in rental values because of improved transport corridors and metro connectivity
- Hike in capital values of suburban properties near IT/commercial hubs
City Specific Highlights
Delhi Index rose by 9% because of rise in average prices in majority of localities across the city. The maximum activity was witnessed in areas where middle and upper middle-income groups of buyers are active. Significant increase in capital values were registered in Dwarka, Chittaranjan Park, Kalkaji, East of Kailash, Mayur Vihar Phase-1 and Paschim Vihar, followed by Rohini Sector -13 and Alaknanda.
Chennai Index posted 9% increase. Rise in values and number of listings in Thiruvanmiyur and Ambattur were major contributors to the rising index values. Premium localities such as Anna Nagar too posted significant increase in number of listings, pushing up index values.
Ghaziabad Index rose 9% because of increase in average capital values of properties across the city compared to the previous quarter. Both, average prices and number of listings rose across the city.
Noida Index rose 8% because of increase in average capital values of the properties across the region. This was primarily due to the legal battles in Noida Extension between farmers and Noida development authority. Properties have benefitted in both possession and under-construction stage.
Bangalore Index rose by 5%. There was a hike in capital values and the number of listings in heavy weightage localities such as Whitefield, Banerghatta Road and Sarjapur Road.
Hyderabad Index rose by 5% in the Jul-Sep quarter, indicating end-user activity. Values rose in about 60% of the localities. The localities near commercial districts or easily accessible from them have seen a rise in capital as well as rental values. As a result, city and suburban areas witnessed significant price rise.
Mumbai Index values rose 2% in the Jul-Sep 2011 quarter. Only 37% of localities impacted the city index positively on the back of average value of property and the number of listings across the city.
Gurgaon Index posted nominal increase of 2% on the back of no major supply in majority of localities in the Jul-Sep 2011 quarter. It is the steady increase in values in most localities that held the city index up.
Pune Index went up by a minimal 1% mainly on account of stable number of listings and small rise in values across the city.
Kolkata Index fairly remained stable due to pre-festive season slowdown across the city and stable number of listings in most areas.
Ahmedabad Index value dropped 5%. Sharp fall in capital values in premium localities and the significant drop in the number of properties coming up for transaction have pushed index values downwards.
About the MagicBricks.com PropIndex:
“PropIndex” is an apartment index that tracks the property market performance of 11 cities across the country. Based on a bedrock of immense data, this Index, pioneered by India’s biggest property portal, MagicBricks.com, will offer a rounded perspective of trends in Prices, Rentals, Supply of apartments in all these markets.
The Index & detailed report processed from the largest base of “live” data:
- Over 4Lac live listings with 6000+ fresh listings posted daily.
- Over 1Lac users on Magicbricks daily doing over 1cr searches per month.
- Listings covering over 3500+ localities in 300+ cities.
The Index also features:
- “Smart” algorithm & Statistical tools to handle large data volumes.
- Expert comments from top builders and brokers.
- Original content sourced from in-house research and from multiple “advice” platforms available on Magicbricks.com
Each City report covers all important Metrics
National Property Index (NPI): A weighted average of 11 different city indices (CPI)
City Property Index (CPI): This has been derived as a function of supply of properties weighted against the average capital value appreciation/drop in various localities of the city.
Price Monitor: Reflects the capital appreciation/drop within various localities of a city.
Rent Monitor: Reflects the rental appreciation/drop within various localities of a city.
Yield Meter: This is the annual rate of return earned on a property.
Capital Value Tables: Indicates the capital prices for property prevailing in various localities of a city
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