Makaan.com enables Mumbai homebuyers and industry players to take informed decisions, reveals Times Journal of Construction and Design
People Group’s Makaan.com, India’s fastest growing online real estate website, has launched the country’s first Property Index. Property Index, aims at empowering homebuyers and the real estate industry with up-to-date information related to the movements in residential property prices. Apart from analysing the trend for Mumbai-located properties, Makaan.com’s Property Index also tracks property price trends nationally for major metros and tier II cities. The Index is intended to serve as an objective tracker of property trends. It is meant to aid in decision-making and is expected to be used by both end users and the industry.
Makaan.com is an online real-estate service promoted by People Interactive; the consumer internet division of the Anupam Mittal-led People Group and is a Sequoia Capital-backed company. This site has been conceived to explore and invent opportunities in the online real-estate space. Makaan.com is committed to helping users make wise and profitable decisions related to buying, selling, renting and leasing of properties, in India as well as in key global geographies. Regarding the initiative, Aditya Verma, Business Head and Vice President, Makaan.com said, “Makaan.com Property Index is the first of its kind in the Indian real estate industry and is a result of two years of thought, work and analysis about creating intelligence for the real-estate industry. It is a significant milestone for our broader mission of providing tools, information and intelligence for property buyers and sellers. So naturally, we are very excited.” The index is another attempt by Makaan towards bringing objective information and analysis for the benefit of the construction industry and consequently, the nation.
This user-friendly portal currently concentrates on the top five cities of India—Delhi, Mumbai, Bangalore, Hyderabad and Pune. The company is focused on discovering and developing scalable internet business models around communities and classifieds. The company prides itself on being a pioneer of Indo-centric internet business models and believes in innovation-led growth.
Makaan.com Property Index is part of the intelligence division of Makaan.com—MakaanIQ—which has been bringing out property intelligence and research reports for the benefit of homebuyers and real estate industry since Makaan.com was launched. MakaanIQ was the first to predict a shift towards affordable housing in 2008.
The index is based on a minimum database size of 20,000 data points every month and the analysis has been drawn over a period beginning from January 2009. The complex algorithm takes into account the property prices as the base and then factors in the demand and supply of residential properties for Mumbai and all other cities covered by it. Care has been taken to give weightage to cities in line with the size of the underlying property market. The prices of properties were obtained across micro-markets through property listings on the website as well as Makaan.com’s nationwide sales force.
The property index tabulates the movement in residential property prices starting from January 2009. According to the index, most Indian cities witnessed a price correction in the first half (January–June) of 2009. The national index slipped from 1,000 to 946 during this period, thereby bringing about a drop of 5.7 per cent. There has been an upward trend from there on. If one observes the index during the second half of 2009, he will notice that it has moved from 946 levels (in June 2009) to 1,128 (in December 2009), signaling an improvement of 19.2 per cent in property prices. Over the 12-month period from January–December 2009, property prices in India have increased by 12.8 per cent.
On analysing the Mumbai Property Index, one can observe a negligible rise in property prices in the first half of 2009. During the period from January–June 2009, the index moved from 1,000–1,015 points, registering a minor increase of 1.5 per cent. However, things started picking up in the second half of the year and Mumbai property prices registered a gain of 18.2 per cent from 1,055 points in July 2009 to 1,247 in December 2009. Over the 12-month-period from January–December 2009, the property prices in Mumbai gained by 24.7 per cent.