National Housing Bank revises the data with a new base year and the results are out - Housing Prices increased in 33 cities by up to 22 percent during the April-June quarter this fiscal.
The National Housing Bank is the regulator of housing finance firms and is also responsible for providing them financial assistance
- The following cities falling under the category of Tier-1 has witnessed maximum increase on a year-on-year basis which includes Ahmedabad at 12.9 percent, followed by Hyderabad at 9.5 percent, Pune at 7.2 percent and Mumbai at 5.2 percent, Bangalore and Kolkata at 2 percent.
- Tier-2 cities that have seen a significant rise in indices include Ranchi with 21.7 percent, followed by Nashik with 8.4 percent, Surat with 7.4 percent and Vadodara with 7.4 percent.
- Gandhinagar at 12.8 percent, Chakan at 10.8 percent and New Town Kolkata at 10.5 percent showed a significant increase in indices as Tier-3 cities.
The National Housing Bank (NHB) launched housing prices index as NHB RESIDEX in 2007 to track the movement in housing prices on a quarterly basis. The revamped NHB RESIDEX is more extensive in its geographic coverage as it now includes a cluster of indices with an updated base year, revised methodology and automated processes. NHB as a wholly owned subsidiary of RBI has now revamped the system by changing the base year and released separate index for under construction properties. 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 revamped index captures two housing price indices as HPI@Assessment Prices for 50 cities and HPI@Market Prices for Under Construction Properties for 50 cities. The coverage spreads across 21 states in India. Another inclusion in NHB RESIDEX includes Composite HPI@Assessment Prices and Composite HPI@Market Prices for Under Construction Properties for 50 cities each. One of the significant changes has been made recently according to which the base year is now shifted to FY 2017-18. Till March 2018, HPIs tracked the movement in prices of residential properties on a quarterly basis by taking 2012-13 fiscal as the base year.
NHB also gave some insights regarding Composite HPI@Assessment Prices which stood at 83 in June 2013. It 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 a year-on-year basis.
Regarding under-construction properties, NHB said that composite HPI@Market Prices stood at 84 in June 2013 and it has 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 a year-on-year 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 a year-on-year basis. Annual growth in HPI ranged from 16.9 percent in Kolkata to (-) 8.3 percent in Faridabad at the end of the quarter.