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india property gets its first price index

News Posted On: 05 February 2010

India's first ever property index has been unveiled by the Makaan.com; the Makaan.com Property Index (MPI). The index will cover India as a whole and the main metros and tier II cities individually, and is aimed at giving India property buyers an accurate measure of residential property price movements in India for the first time ever.

The index is taking data from January 2009, and every monthly it will be based on 20,000 data basis points. The complex algorithm will take into account the property prices as base and then factor in the demand and supply of residential properties for each of the cities covered.

It has to be said an Indian property index is badly needed. Until this point the only reports you can get are from -- hardly impartial -- realtors and industry professionals. That said: it hardly takes a rocket scientist to work out that the supply/demand dynamic can really only push Indian property prices in one direction -- up --, but it will sure be nice to see it down on paper in a way that can be relied upon.

Indian metros are Mumbai, Delhi, Kolkata (Calcutta), Chenai (Madras) and others depending on what report you read. It is hard to find out exactly which Indian cities are considered Tier II because there are different rankings for economy and population etc, but the list includes: Ludhiana, Lucknow, Chandigarh, Guwahati, Bhubaneswar, Jaipur, Ahmedabad, Surat, Nagpur, Indore, Goa, Vishakapatnam, Mysore, Coimbatore and Kochi.

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