Trends of Real Estate prices in major cities

The buyers were expecting correction in prices over the last two quarters and reduction of home loan interest rates. In fact the inflation corrected in Dec 13 but RBI increased the repo rate by 25 basis points in Jan 14.The Banks have not increased the rate but some Banks e.g SBI have started offering lower rates for new borrowers.

Trend in prices (Residex)

The Residex published by NHB is almost flat over the last two quarters baring 2-3% increase in some cities e.g. Chennai and Lucknow. Prices have corrected by 3-5% in Delhi, Bhopal and Jaipur and remained flat in other cities.

 

Major Cities/

Index of prices

2007

3rd Quarter 2011

1st Quarter 2012

3rd Quarter

2012

1st Quarter 2013

2nd Quarter 2013

3rd Quarter 2013

Hyderabad

100

84

86

84

88

84

88

Ahmedabad

100

163

164

180

192

186

191

Chennai

100

271

304

312

310

303

318

Jaipur

100

65

80

85

112

110

108

Lucknow

100

154

164

175

183

187

191

Pune

100

169

181

201

221

219

219

Kochi

100

97

72

80

89

86

86

Bhopal

100

208

204

206

230

227

220

Kolkata

100

191

191

191

197

189

199

Mumbai

100

194

190

198

222

221

222

Bengaluru

100

93

92

98

109

108

107

Delhi

100

154

168

178

202

199

190

Bhubneshwar

100

 

161

168

197

195

193

Chandigarh

100

 

 

 

194

191

192

Dehradun

100

 

 

 

183

184

184

Real Estate Investments in Mumbai

Over the last 6 years, Lower parel and Mahim(West) has given the best return on investments by  more than 3 times  whereas Bandra, Andheri(East),Malad, Goregaon  and Chembur etc have  generated return on investments of more than 2 times. Navi Mumbai, Kalyan and Mira road, Bhayender etc have generated good returns  but price correction is visible recently.

Mumbai

2007 Index

Jul- Sept 2011 Index

Jan- Mar 2012 Index

Jul-Sep 2012 Index

Jan-Mar 2013 Index

Apr-Jun 2013 Index

Jul-Sep 2013 Index

Cuffe Parade, Malabar Hill

100

247

212

210

249

227

231

Lower Parel,Mahim West

100

307

288

347

383

396

371

Bandra West, Andheri East

100

195

205

209

235

240

239

Kurla East, Chembur

100

155

160

161

180

194

197

Malad, Borivali,Goregaon

100

180

205

184

182

221

235

Bhandup , Mulund

100

159

172

176

184

187

203

Navi Mumbai(Vashi, Kharghar)

100

143

174

159

190

165

170

Thane(Pokaran Road 1 &2)

100

114

133

195

198

202

173

Kalyan(Near Railway Station)

100

112

104

128

155

123

141

Mira Bhyander (Mira Road)

100

115

129

117

140

147

144

Virar,vasai, Nala Sopara

100

120

99

114

161

157

136

Badlapur

100

110

93

124

134

119

109

City Index

100

194

190

198

222

221

222

 Variation of prices across various localities

The price variations in the cities are not uniform across areas; it depends on the localities having various facilities e.g. communication, schools, hospitals, shopping etc. Even in smaller cities like Bhubaneswar, the prices in the northern and western side e.g. chandrasekharpur and khandagiri  have tripled over the last 6 years ;in the eastern side e.g. Cuttack Road ,it has doubled whereas in the southern side, prices  has increased marginally.

Our view

Families looking for buying flats should explore buying now and can also avail home loans at very reasonable rates say at 10.15% being offered by some banks.

Last modified on Wednesday, 10 February 2016 06:55

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.

8 comments

  • Sujata Aniruddha Sapkal

    posted by Sujata Aniruddha Sapkal

    Wednesday, 26 August 2015 10:41

    useful information

    Report
  • how you can help

    posted by how you can help

    Tuesday, 13 May 2014 11:57

    You have observed very interesting details! ps nice web site.

    Report
  • Flats in Badlapur

    posted by Flats in Badlapur

    Tuesday, 25 March 2014 06:31

    As Investing in Real Estate seems to be a good option.

    Report
  • Dr. Vandana Mahajani

    posted by Dr. Vandana Mahajani

    Tuesday, 11 February 2014 10:39

    The prices seem to increase in tier two cities. Metros appear to be stable

    Report
  • Dr. Vandana Mahajani

    posted by Dr. Vandana Mahajani

    Tuesday, 11 February 2014 10:38

    The prices seem to increase in tier two cities. Metros appear to be stable

    Report
  • Dr. Vandana Mahajani

    posted by Dr. Vandana Mahajani

    Tuesday, 11 February 2014 10:38

    The prices seem to increase in tier two cities. Metros appear to be stable

    Report
  • Dr. Vandana Mahajani

    posted by Dr. Vandana Mahajani

    Tuesday, 11 February 2014 10:37

    The prices seem to increase in tier two cities. Metros appear to be stable

    Report
  • arati

    posted by arati

    Tuesday, 11 February 2014 07:38

    very helpful article.

    Report

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