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The Indian Real estate market in 2013 has continued to grow despite a GDP that was revised downward consistently in the last three quarters. The situation was exacerbated by an increase in average inflation rate (based on the wholesale price index, or WPI) which has touched 7%.
The performance of buyer market across the country presented a similar picture if we compare this quarter with the previous quarter of 2013. It can be attributed to these cities getting affected by multitude of above mentioned factors if not by equal magnitude.
The northern region primarily NCR has witnessed no movement with quarter on quarter analysis (Q3-13 over Q2-13) showing no change in capital appreciation while year on year (Q3-13 over Q3-12) analysis revealing an 8% growth. The western region of Mumbai and Pune has done better than their northern counterparts with quarter on quarter analysis showing a growth of 3% and year on year analysis reflecting a double digit growth in this region.
The Southern region comprising of Bangalore, Chennai and Hyderabad are following the footsteps of North with quarter on quarter analysis depicting no change in the capital appreciation while year on year analysis showing an upward growth of 5%.
The Eastern region is an outlier with quarter on quarter comparison shows 4% increase in capital appreciation which is highest amongst all the seven cities. The yearly comparison (Q3-13 to Q3-12) also paints an uplifting picture with a growth of 11%.
The rental market has seen stability with rents showing no upward or downward movement in this quarter (July-Aug-Sep) when compared to previous quarter ( April- May- June). However, Kolkata has proved to be an aberration with a twin decline in rental values. The quarter on quarter comparison and year on year comparison shows a decline of 15% and 11% respectively.
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