The National Property Index (NPI) prepared by magicbricks.com went up by over 2% in the Jan-March 2012 quarter, compared to Oct-Dec 2011 quarter. The NPI is a weighted average of supply and prices across 11 cities covered across India. This index is a first-ofits-kind enumeration in the country.
According to the report, out of 11 cities in the Apartment Index, eight cities — Delhi, Kolkata, Bangalore, Pune, Ghaziabad, Gurgaon, Hyderabad and Noida — have seen a rise. Delhi and Kolkata topped the City Index chart by registering 9% and 8% increase, respectively.
Ghaziabad, Bangalore, Gurgaon and Pune had a 4-5% rise followed by Hyderabad and Noida at 1-3%. Ahmedabad showed stable index values. On the other hand, Mumbai and Chennai registered a drop of 1-2% in the Jan-March 2012 quarter over the previous quarter.
Key findings of the magicbricks.com PropIndex Anniversary Issue
The National Property Index (NPI) rose over 2% across the country Most of the consumer demand is for properties costing up to Rs 60 lakh Transport connectivity and affordability remain top priorities among consumers Ready-to-move-in and property near completion stage witness maximum demand Cities witness migration of working population to affordable locations in the suburbs Localities continue to have good demand for properties in and around commercial centres for both outright purchase as well as rentals Traditional unit size properties in the 2- and 3BHK category continued to be the common man’s choice across all cities Substantial increases seen in property values across IT and technology hubs in Bangalore, Pune, Kolkata, Hyderabad and Chennai
The data collected by MagicBricks shows that the Delhi Index rose by 9%. An upward trend in average capital values in around 90% of the localities in the city pushed the index values up. Localities like Dwarka, Safdarjung Enclave, Greater Kailash I & II, Indraprastha Extension and Mayur Vihar Phase I were the major contributors. Asking prices remained high in anticipation of a reduction in home loan interest rates.
The Gurgaon Index rose by 4%. Over 80% of the localities had an increase in average capital values across the city. Sectors along the Dwarka Expressway, Golf Course Road and availability of properties at relatively affordable prices in Sectors 80, 81, 83, 84 and 92 were the major contributors. This tilted the index upwards. Currently, the Gurgaon-Dwarka Expressway is under-construction and its completion is expected to further boost property values along this stretch.
The Noida Index value was up by 1% in the Jan-March 2012 quarter. Residential demand remained up across the city as emerging areas like Sectors 74, 75, 76, 78 and the sectors on the Noida Expressway saw a healthy rise in values. Unsettled litigation in Noida Extension and the slow growth rate in new launches kept the asking values high.
The Ghaziabad Index rose by 5%. Localities with good Metro connectivity continued to have a healthy demand from both investors as well as end users, resulting in an increase in average capital values. The increase in weightage of localities with affordable options, too, impacted the index positively. This collectively pushed the index upwards.
According to the data collected for the preparation of index, cities have had migration of working population to affordable locations in the suburbs with good connectivity and availability of properties with all new modern lifestyle features.
The report also shows that cities continued to have a good demand for properties in and around commercial centres for both outright purchase as well as rentals.
Improvement in infrastructure facilities like road widening, opening of new modes of transport like Metro link and other proposed projects resulted in positive impact on capital as well as rental values, the report says.
Increasing land acquisition cost, construction cost and tight monetary policies were some of the main deterrents for a healthy growth in average property prices.
The report says that there has been an increase in values across IT-driven localities in cities like Bangalore, Pune, Kolkata, Hyderabad and Chennai for both, outright purchase and lease. Traditional unit size properties in the 2- and 3BHK category continued to be the common man’s choice across all cities.
Source – TOI