News: NHB's Residex To Cover 50 Indian Cities-11.07.2017

NHB's Residex to cover 50 Indian cities

Kailash Babar  |  ET Bureau  |  July 10, 2017, 18:09 IST

MUMBAI:National Housing Bank, the regulator of housing finance companies, has widened the scope of its housing price index NHBResidex to 50 cities across the country from 26 cities earlier. NHB Residex will now have two indices based on data from lenders and market price data for under-construction properties collected through survey, the regulator said in a statement.

The housing price index HPI @ Assessment Prices will be based on banks and lenders data for 50 cities, while HPI @ Market Prices for under construction properties will cover 47 cities. Both the indices are using 2012-13 as base year.

NHB Residex is planning to cover more cities across India and the scope will also be widened to include Land Price Index (LPI) and Building Materials Prices Indices (BMPI), and Housing Rental Index (HRI).

The index was launched in July 2007 by National Housing Bank to track the movement in prices of residential properties in 26 cities with 2007 as base year.

NHB has partnered with Liases Foras Real Estate Rating & Research for automating processes and providing data analytic for these indices.

Currently, the index captures price movement at city level under three product categories based on carpet area of less than or equal to 60 sq meter, more than 60 sq meter and less than or equal to 110 sq meter, and more than 110 sq meter.

As per lenders valuation data, total 27 cities out of 50 registered upward price movements during January-March quarter compared to previous quarter ended December 2016. Highest increase was observed in 10 cities including 11.7% in Bhubaneshwar, 10.9% in Vishakhapatanam, 10% in Raipur, 8.1% in Kanpur, 6.7% in Gurgaon, 6.2% in Chandigarh and 3.7% in Mumbai. However, 19 cities have shown decline in prices over the previous quarter with maximum fall observed in Ranchi at 13% followed by 12% in Gandhinagar, 8.9% in Surat and 7.2% in Kolkata.

According to price movements under HPI @ Market Prices for under-construction properties, 24 cities out of 47 markets saw prices moving upward over previous quarter. Highest increase was witnessed in seven cities including 8.7% in Jaipur, 6.5% in Chennai, 5.7% in Lucknow5.2% in Guwahati and 4.4% in Hyderabad. Total 14 cities have shown decline in prices with highest fall observed in Patna at 16.2%, followed by 6.3% in Nashik, 4.3% in Delhi, 3.9% in Faridabad and 3.4% Chandigarh.