Smaller units see max price increase; Tier 2 cities perform better than Tier 1: NHB Residex
NHB RESIDEX, an initiative of the National Housing Bank, was released on Monday.
Smaller residential units sized between 60 to 100 sq m have witnessed the maximum price increase. Several Tier 2 cities such as Bhubaneshwar and Vishakhapatnam have performed better than Tier 1 cities. All cities except Delhi and Kolkata have witnessed an increment in housing price. These are the key takeaways from the NHB RESIDEX, an initiative of the National Housing Bank released on Monday.
This revamped NHB Residex was launched by Minister of Housing and Urban Affairs M Venkaiah Naidu on the occasion of National Housing Bank entering the 30th year. The latest version of NHB RESIDEX is not only wider in its geographic coverage, but also uses analytics in the calculation of the indices. NHB RESIDEX has proposed to widen its coverage and capture the house price data from over 100 cities across the country, including State/UT capitals and Smart Cities.
Planning To Buy A House? Here are 10 Things To Keep In Mind
Maximum increase was observed in 10 cities viz., Bhubaneshwar (11.7 percent) followed by Vishakhapatnam (10.9 percent), Raipur (10 percent), Kanpur (8.1 percent), Gurgaon (6.7 percent), Chandigarh (6.2 percent), Coimbatore (4.9 percent), Mumbai (3.7 percent), Vadodara (3.7 percent) and Chakan (3.7 percent). However, 19 cities have shown decline in prices over the previous quarter with maximum fall observed in Ranchi (13 percent) followed by Gandhinagar (12 percent), Surat (8.9 percent), Ludhiana (7.8 percent), and Kolkata (7.2 percent), it says.
In case of ready properties, all Tier 1 cities, barring Ahmedabad and Delhi have witnessed a price increase over last five years. The increase has been nominal ranging from 6-8 percent annualised. Mumbai, Pune, Bengaluru and Chennai are among cities with the highest increment Delhi and Ahmedabad are still at 2012 prices. Meerut, Vijayawada, Vishakhapatnam (Vizag) and Ludhiana feature among the top five. Annualised increase has been in the range of 8-10 percent in top five cities.
As for under construction properties, all Tier 1 cities except Delhi and Kolkata have witnessed an increment in housing price, though a low increase of 6-7 percent. Delhi and Kolkata have declined in prices at 11 percent and 6 percent respectively. Among Tier 2 cities, except Patna, all cities witnessed an increase in housing price index. Ludhiana, Jaipur and Dehradun features at the top with 9-12 percent annualised increase, it said.
As for market prices for under-construction properties for quarter ended March 2017, out of 47 cities covered for the quarter ended March 2017, the upward movements in prices of residential properties were seen in 24 cities over the previous quarter ended December 2016.
Maximum increase was observed in seven cities viz., Jaipur (8.7 percent) followed by Chennai (6.5 percent), Lucknow (5.7 percent), Guwahati (5.2 percent), Howrah (5.0 percent), Hyderabad (4.4 percent) and Bidhannagar (4.1 percent), whereas, 14 cities have shown decline in prices over the previous quarter with maximum fall observed in Patna (16.2 percent) followed by Nashik (6.3 percent), Delhi (4.3 percent), Faridabad (3.9 percent), and Chandigarh (3.4 percent), says the report.
“We envision NHB RESIDEX to be of great use to diverse stakeholders in the housing industry. With housing in India being a major focus area, the need for transparent reference index is more important than ever. In recent years, the Government of India has initiated a series of positive steps in order to bring about more transparency and balanced growth of the sector,” says Sriram Kalyanaraman, Managing Director & Chief Executive Officer, National Housing Bank.“Under the Housing for All by 2022 Mission of GoI, the introduction of PMAY, providing infrastructure status to affordable housing, enactment of Real Estate Regulation & Development Act and amendment of the Benami Property Act are directly aimed at rationalizing the housing market in India and facilitating the efforts for providing affordable housing in the country," he added. "Various schemes are being announced to promote the economic activities of households, which will translate into greater end-user participation in the housing markets. In line with these developments, NHB RESIDEX will establish higher efficiency and confidence in the housing market and enable the governments to achieve their housing goals successfully."