Housing prices increased in 33 cities by up to 22 percent during April-June quarter this fiscal, while rates fell in 14 cities by up to 13 percent and 3 cities remained stable, according to revised National Housing Bank data with new base year. For under-construction properties, housing prices went up in 39 cities by up to 17 percent and declined in 8 cities by up to 8 percent and remained stable in 3 cities.
The National Housing Bank (NHB), which launched housing prices index ‘NHB RESIDEX’ in 2007 to track the movement in housing prices on quarterly basis, has revamped the system by changing the base year and releasing separate index for under construction properties.
“NHB RESIDEX has been revamped to include cluster of indices with updated base year, revised methodology and automated processes. The revamped NHB RESIDEX is wider in its geographic coverage…,” it said in a statement.
The revamped index captures two housing price indices — ‘HPI@ Assessment Prices for 50 cities and HPI@ Market Prices for Under Construction Properties for 50 cities’. The coverage is spread across 21 states in India.
NHB RESIDEX also includes Composite HPI@Assessment Prices and Composite HPI@Market Prices for Under Construction Properties for 50 cities each.
Till March 2018, HPIs tracked the movement in prices of residential properties on a quarterly basis, taking 2012-13 fiscal as the base year. Now, the base year has been shifted to FY 2017-18.
“Composite HPI@Assessment Prices stood at 83 in June, 2013 and has moved up to 101 in the current quarter i e June, 2018. The index has moved up with a CAGR of 3.8 percent over the years. The index increased by 2 percent on YoY (Year-on-Year) basis,” NHB said.
City-wise, it said the HPI recorded an overall increase in 33 cities, decrease in 14 cities and no change in 3 cities on y-o-y basis. “Annual growth in HPI ranged from 21.7 percent in Ranchi to (-) 13.4 percent in Bhiwadi at the end of the quarter”.
Among the 8 Tier-1 cities, Ahmedabad witnessed maximum increase at 12.9 percent on y-o-y basis, followed by Hyderabad (9.5 percent), Pune (7.2) percent and Mumbai (5.2 percent), Bangalore and Kolkata (2 percent).
Chennai witnessed no change and Delhi witnessed a fall in index by (-) 4.8 percent.
Of the 29 Tier-2 cities, NHB said that significant rise in indices was seen in Ranchi (21.7 percent), followed by Nashik (8.4 percent), Surat (7.4 percent) and Vadodara (7.4 percent), while significant fall in indices was seen in Ludhiana (-12.3 percent) and Jaipur (-9.1 percent) on y-o-y basis.
In 13 Tier-3 cities, Gandhinagar (12.8 percent), Chakan (10.8 percent) and New Town Kolkata (10.5 percent) showed significant increase in indices, while Bhiwadi (-13.4 percent) showed maximum decrease.
In under-construction properties, NHB said that composite HPI@Market Prices stood at 84 in June, 2013 and have steadily moved up to 101 in the current quarter i.e. June, 2018. The index has moved up with a CAGR of 3.6 percent over the years. On y-o-y basis, the index has witnessed a rise of 3.1 percent.
City-wise, the HPI recorded an overall increase in 39 cities, decrease in 8 cities and no change in 3 cities on y-o-y basis.
“Annual growth in HPI ranged from 16.9 percent in Kolkata to (-) 8.3 percent in Faridabad at the end of the quarter,” the statement said.
Annually, all the 8 Tier 1 cities showed growth with Kolkata (16.9 percent), followed by Hyderabad (6.3 per cnet), Mumbai (4.1 percent), Delhi (4.1 percent), Chennai (3.1 percent), Pune (2 percent), Ahmedabad (2 percent) and Bengaluru (1 percent).Among 29 Tier-2 cities, the maximum increase in indices was seen in Indore (9.7 percent) followed by Dehradun (8.3 percent) and Lucknow (7.5 percent), while maximum decrease in indices was seen in Faridabad (-8.3 percent), Thiruvananthapuram (-7.5 percent) and Vadodara (-3.9 percent), on y-o-y basis.