New Delhi: A report by the National Housing Bank suggests that buying a house in 39 cities may have become expensive.
The report titled 'Housing price Index' or the 'NHB RESIDEX', shows housing prices across India's 39 cities showing signs of recovery. The finding collates data on an increase or decrease in prices for under-construction properties.
Residential prices had a rise of 8.5% in Kolkata, 5% in Hyderabad, 3.8% in Mumbai, 3.3% in Delhi, 2.3% in Bengaluru, 2.2% in Ahmedabad and 0.7% in Chennai. During the March quarter, all Top 8 property markets of the country, except Pune had shown growth on annual basis. Pune saw prices decline by 1.4% from a year ago.
Prices rose in 39 cities, it also decreased in ten cities, and there was no change in 5 cities on a year-on-year basis.
The highest price escalation was recorded in Lucknow at 9.4% during the quarter ending March. The official HPI (Housing Price Index) also spotted a rise in Panvel (8.6%), Kolkata (8.5%), Indore (7.1%), Thane (6.5%) and Chandigarh (6.4%). While the Index remained Stable in Gandhinagar, a marginal annual increase in Index was witnessed in cities like Thiruvananthapuram, Chennai and Chakan at 0.7% each.
Along with the Top 10 cities witnessing a fall in Index, Patna with 12.2%, Faridabad with 7.1%, Vadodara with 3.5%, Rajkot with 1.8%, Bhopal with 1.7%, Howrah with 1.7% and Pune with 1.4% observed significant declines. Property rates in Vasai – Virar, a suburb north of Mumbai showed marginal annual decrease at 0.9% while Meerut at 0.8% & Nashik at 0.08 % gave some relief to consumers.
The NHB RESIDEX is considered as India's first official housing price index. It was built on the initiative of the National Housing Bank (NHB), developed at the behest of the Ministry of Finance.
The index was formulated under the guidance of a Technical Advisory Committee (TAC) comprising of stakeholders from the housing market.
It was launched in July, 2007 and updated periodically till March 2015, taking 2007 as the base year. NHB RESIDEX now available online with wider geographical coverage.
The index however was in stark contrast to one from research and analytics firm PropEquity which suggests that the real estate industry saw housing prices decline as much as 7% in Jan-March 2018.
According to the agency, Unsold housing stock fell by 2% to 5,95,074 units during March quarter 2018 from 6,08,949 units in the previous quarter due to an increase in sales volume. Housing sales rose by 8% during the quarter at 40,694 units from 37,555 units in the previous quarter (Oct-Dec 2017).
In its report, the agency said, "Weighted average prices in the quarter fell 7% from Rs 6,762 per sq ft to Rs 6,260 per sq ft suggesting aggressive pricing by the developers to ignite home buyers' demand." PropEquity analysts inferred that developers may have resorted to slashing property rates in a bid to boost sluggish sales.