Residential real estate prices increase in half of the cities and declined in other half of cities surveyed

Revamped NHB RESIDEX launched; official residential price indices for January-March,2017 released

The revamped and expanded official online user friendly NHB RESIDEX that captures movements in the prices of residential real estate prices released today revealed that prices during January-March, 2017 have increased over that of October-December, 2016, in about half of the cities covered under the survey while the other half have either registered a decline or remained the same.

Minister of Housing & Urban Affairs Shri M.Venkaiah Naidu today released the new version of NHB RESIDEX on the occasion of the National Housing Bank entering its 30th year.

Speaking on the RESIDEX, Shri Naidu said the price indices for the last quarter of last financial year i.e 2016-17 proved wrong the critics of demonetization who said that economy will take a hit. He also said that the National Housing Bank also collected data on land prices which showed that a correction in land prices is taking place which again reflects the declining trend in transactions of unaccounted money.

NHB RESIDEX for January-March,2017 revealed that price indices for residential properties based on actual market prices for ongoing construction prices have increased over the previous quarter in 24 of the 47 cities covered in the Index including in Jaipur, Chennai, Lucknow, Guwahati, Howrah, Hyderabad, Bidhannagar etc. In Delhi, Faridabad, Chandigarh, Patna and Nashik etc, prices have come down. This component of RESIDEX, called Housing Price Index@Market Prices is based on actual market information.

The other component of RESIDEX called as HPI@Assessment Prices based on the information furnished by banks and other lending agencies showed that prices have increased in 27 of the 50 cities surveyed. These include; Gurgaon, Mumbai, Vadodara, Raipur, Kanpur, Chandigarh, Bhubaneswar, Visakhapatnam and Coimbattore. Prices, however, have declined in Ranchi, Gandhinagar, Surat, Ludhiana, Kolkata etc.

The RESIDEX has been computed for three categories of houses with carpet of below 60 sq.mtre, 61-110 sq.mtres and 111 sq.mtres and above.

RESIDEX, the country's first official housing price index (HPI) was launched in 2007 covering 26 cities and was published till March, 2015 on a quarterly basis. The revamped RESIDEX has been expanded to 50 cities spread over 18 States and UTs. These include 38 smart cities, of which 18 are state capitals.

Base year for the new RESIDEX has been moved from 2007 to 2012-13 to capture the changing structure of the economy besides capturing the latest information to accurately reflect the current economic situation, as per the internationally accepted practices.

Shri Shriram Kalyanaraman, CMD of National Housing Bank informed that RESIDEX will soon cover 100 cities and also will be further widened to include Land Price Indices, Building Materials Price Indices and Housing Rental Index.

NHB RESIDEX helps buyers and sellers to check and compare prices before entering a transaction. They can also analyse the price trends across different cities both at composite level and product category level. It helps lenders in credit evaluation. It provides promoters with a standardized tool to assess the housing demand. Government agencies can monitor trends in macro and micro markets and predict future behavior of the housing market.

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