MagicBricks Apartment Index up 4% in July-Sep 2011 quarter

NEW DELHI: Home sales across the country have been falling for the last few quarters but property prices are still on the upswing. The MagicBricks India Apartment Index, which is the weighted average of supply and prices across cities, went up by 4% in the July-September 2011 quarter, showing a rise in capital and rental values across metros.

Of the eleven cities covered in the India Apartment Index, nine have seen a rise in property rentals and capital values. The apartment index in Delhi, Chennai and Ghaziabad rose 9% in the quarter, followed by Noida (8%), Bangalore and Hyderabad (5-6%) and Mumbai, Gurgaon and Pune (1-2%). The Apartment Index in Ahmedabad dropped 5% on the back of falling values in some key locations while Kolkata remained stable during the quarter, said the MagicBricks report.

In Delhi, the index rose by 9% because of rise in average prices in majority of localities across the city. “Maximum activity was witnessed in areas where middle and upper middle income groups of buyers are active,” said the report. There was a significant increase in capital values in Dwarka, Chittaranjan Park, Kalkaji, East of Kailash, Mayur Vihar Phase-1 and Paschim Vihar, followed by Rohini Sector -13 and Alaknanda.

In Ghaziabad, increase in average capital values of properties across the city pushed the index up 9%, while in Noida, the index rose 8% because of increase in average capital values of 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,” said the report.

The rise in values as well as the number of listings in areas like Thiruvanmiyur and Ambattur were major contributors to the rising index value in Chennai. The index rose 5% in Hyderabad indicating end-user activity.