Led by Ahmedabad and Delhi the MagicBricks 11 City PropIndex rises 4 percent

MagicBricks.com’s PropIndex is the first Index of its kind that tracks both demand and supply of real estate across the 11 major cities of India. Now in its second year, the fifth quarterly edition has just hit the stands.

The major discoveries in this PropIndex were that despite weak buyer sentiments and tight monetary conditions, the National Property Index (NPI) went up by over 4 per cent in the Apr-Jun 2012 quarter as compared to Jan-Mar 2012 quarter. In addition, 9 of the 11 indexed cities showed a rise in the property index values.

The Ahmedabad Index shot up by 10 per cent, the maximum among all the cities. This was mainly due to the effects of listed values. The Delhi Index also witnessed a rise of 6 per cent, though growth was limited to certain pockets. However, Gurgaon registered a drop of 4 per cent, owing to a fall in active listings.

Affordable localities saw a better rise in values as compared to premium localities in cities such as Mumbai, Ahmadabad, Pune and Kolkata.

On the demand front, even though the demand for traditional 2 and 3 BHK categories remained stable across the cities, a growing consumer sentiment preference was seen towards smaller 1 BHK units. Also, there was a distinct preference for ready-to-move in apartments, rather than property with a wait period of 2-3 years.

Volume Two of MagicBricks Property Index comes with new features apart from the Industry standards that MagicBricks introduced of the Listed Price, Rent and Yield Monitors. This edition features Capital Value Ranges of over 620 localities with a special “ranking of top localities” based on changing user demand comparing the top 10 preferred localities in each city currently with the top 10 preferred localities in the Jan-Mar quarter.

User Demand Analytics have been enhanced considerably with insights based on comparison between the Jan-Mar and Apr-Jun quarters.

Speaking at the launch of the latest PropIndex, Sudhir Pai, Business Head, MagicBricks.com highlighted, “Owing to its leadership in the online property space, MagicBricks’ has dominance over the intelligence it is able to gather and present in its PropIndex. With a circulation that includes over 5,000 CXO level executives, the PropIndex would probably be one of the most-read research document in the property space. In this issue, we introduce a new section, ‘News Capsules’. This will highlight news items which could impact future prospects of real estate in the city and therefore, these news items need to be watched & tracked by users wanting to invest in real estate.”

Explaining the News Capsules section, E Jayashree Kurup, Research and Content Head, MagicBricks said, “Property market performance is significantly impacted by drivers outside the purview of buying and selling. There are broadly four key drivers that determine the prospects of real estate – infrastructure such as water and power, transport links creating new growth corridors, policy such as rental laws, property tax, etc and return on investment.”

Here are the other Key Findings from the MagicBricks.com’s PropIndex Vol. 2, Issue 1:

  • National Property Index rose by 4 per cent.
  • Affordable localities were found to be more in demand in comparison to premium areas across different cities.
  • Increasing demand for 1 BHK units registered across multiple cities.
  • Metro connectivity contributed to increase in property rates across cities.
  • Ready-to-move-in and property near completion stage continued to witness maximum user interest.
  • Growing consumer preference towards smaller 1BHK units was recorded across cities such as Ahmedabad, Bangalore, Chennai, Pune, Mumbai and Hyderabad.
  • Cities continued to witness good demand for properties in and around commercial centers, for outright purchase as well as rentals.

Please visit http://property.magicbricks.com/microsite/buy/prop-index-new/index.html for more excerpts from the report.

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