Why thin markets are hard to price — and what to do about it
Early-stage regions don't have enough transactions for reliable price discovery. Here's how we handle that.
In an established market like Navi Mumbai, hundreds of comparable transactions close every quarter, giving a reasonably reliable price signal. In an early-stage region like Dodamarg or KSC New Town, the same period might see a handful — sometimes fewer.
This 'thin market' problem means published price trends in early-stage regions should be read as directional, not precise. A single large transaction can move an index meaningfully.
Our approach is to weight qualitative signals — planning status, infrastructure delivery, comparable regional precedents — more heavily than price trend data in genuinely thin markets, and to say so explicitly rather than presenting false precision.
Sources
- Internal methodology framework
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