Magicbricks Adds Baroda to the PropIndex – Now Covers 12 Cities Pan-India
NEW DELHI, November 28, 2013 /PRNewswire/ --
- PropIndex Clearly Indicates That This is a Market Driven by End-users and Consumer Preferences Have Now Come Into Sharp Focus
- This 10th Edition Issue Also Features a Complimentary Copy of the IIM Bangalore - Magicbricks Housing Sentiment Index Report
Over the last two years the Magicbricks PropIndex has consistently reported on the major real-estate markets of Delhi, Gurgaon, Noida, Ghaziabad, Mumbai, Pune, Ahmedabad, Kolkata, Chennai, Hyderabad and Bangalore.
With substantial growth in volumes of Magicbricks' users from smaller cities, this 10th edition of PropIndex introduces Vadodara as the 1st in a series of new and emerging markets with strong drivers, which shall be introduced over time.
The key take-aways from Vadodara were that the real estate market was largely stable and is witnessing a situation of over-supply, particularly in the price bracket of Rs. 25-50 lakh. More details are available in the full report available on newsstands and online.
The 10th PropIndex includes a complimentary copy of the 1st edition of the "IIMB-MB Housing Sentiment Index" (HSI), which gauges the mood and sentiment of buyers - whether they are end-users or investors, and provides an early indicator of how markets would perform in the future. It clearly indicates that while the consumer is willing to wait in anticipation of better prices, he is also quite willing to search for the best deals over the next six months.
The reported data clearly indicates that this is a market driven by end-users and consumer preferences have come into sharp focus. The number of enquiries indicates that there is a strong latent potential demand. However, buyers seem to be shying away from committing due to a slow market.
While, investors, developers and landlords seem more willing to negotiate in an effort to keep up sales velocities; End-user customers are using this six to eight month window to explore the markets at length, search for a property of their choice and then enter negotiations to get a good deal.
Apartments have emerged as the winner with all cities showing robust demand. Smaller units of 1, 2 and 3BHK are preferred over larger premium apartments. However, demand for premium apartments is driven by a small group of buyers who show that sentiments have nothing to do with this volume of demand. This being a lucrative segment, developers seem to prefer to build more in this category, thereby creating abundant supply.
Speaking at the launch of the latest PropIndex, Sudhir Pai, Business Head, Magicbricks said, "The industry would benefit by using statistics to understand consumer sentiment, and be able to navigate basis the direction that markets are likely to take. The volume of stock in every market, if positioned correctly, can be used to bring back the end user. Unlike 2010, when developers had little to woo the anxious consumer with, this time round, they have plenty of stock and a negotiating power to turn the markets around. The question is, can they take leadership and make Real Estate the sector to kick start a sagging economy?"
Key highlights from the PropIndex:
- Despite all uncertainties and weak sentiments in the market, property worth between Rs. 30-50 lakh continues to top buyer preference nationally.
- Cities that buck the trend are Kolkata, Gurgaon and Mumbai. In Gurgaon and Mumbai, properties worth Rs. 1-2 crore witnessed higher demand, except in Thane and Navi Mumbai. In Kolkata property worth up to Rs. 20 lakh tops demand.
- Bangalore's Index was the biggest gainer with a rise of 17%. It was followed by Kolkata with 9%, Mumbai, Delhi, Pune and Vadodara witnessed a 4% rise each, Ghaziabad, Ahmedabad and Hyderabad with 3% and Gurgaon with 2%. Only, Noida registered a drop of 1%.
- About 40% demand was for multistory apartments across cities.
- About 30% supply was of 800-1200 sq.ft. apartments.
More details are available in the 10th edition of PropIndex and complimentary 1st edition of the "IIMB-MB Housing Sentiment Index" (HSI) - Now on newsstands and online. You may also email [email protected] for the complete report.
About PropIndex:
MagicBricks.com PropIndex is a tool which empowers property seekers and investors with detailed information on the movement of residential apartment prices and supply of properties in India. No credible property index can be a function of direct values as the changes are governed by multiple factors.
MagicBricks.com PropIndex has taken this reality into account and produced an index based on listing of apartments and their capital and rental values on the website.
MagicBricks.com has over 500,000 active properties posted by more than 1,50,000 active users in 300 cities and 10,000 localities. Our users include owners, agents and developers.
Methodology
Apartment values are based on listings on MagicBricks.com. These include multistorey apartments and single units on plotted developments, referred to as builder floors on Magicbricks.com.
The Index is structured in such a way that individual properties are aggregated into their respective cities and then to the National Index. Weightages for PropIndex are based on the supply of properties within the locality/city. Based on this structure, PropIndex gives a realistic picture of trends in price/supply across different property markets in each city. We have used different weightages for Listed Price Monitor/Rent Monitor. Therefore, read as a whole, PropIndex along with tables provided for Listed Price Monitor, Rent Monitor, Yield Monitor and Capital Values, gives an excellent perspective of the property market performance in the quarter.
While listing and its values/supply provide a level of understanding into the market, there are meticulous data checks to prevent aberrations creeping into the Index. These are based on statistical calculations, industry inputs and logical interpretations. The National Property Index (NPI) is indicative of the extent of activity as well as price movements across cities and localities in the major cities active on MagicBricks.com. The index includes the top 11 cities (these have been chosen based on their activity levels) and has an individual city report for each of these cities. While the NPI and its movements are of interest to the expert community of bankers, builders and investors, the PropIndex has also taken care to explain the nuances of index movements at the locality level that would help the huge base of MagicBricks.com consumers.
Insights into consumer demand have been gathered through analysis of search information on the site. This helps understand the best localities by demand, the type and configuration of units as well as the budget-wise preferences. The PropIndex is the result of meticulous research at the locality level and through detailed discussions with experts at Magicbricks.com's offline and online initiatives. The Indian real estate market is dynamic and the PropIndex reflects those changes. Since it is derived from a dynamic database, additions and deletions of localities happen as a function of market dynamics.
Primary Media Contact: Aseem Seth, [email protected], 91-9910273367
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