NHB RESIDEX shows recovery in 39 cities from January-March

The trend in the real estate prices in India is shown by the National Housing Banks’s (NHB’s) Housing price index (HPI) also known as RESIDEX. The HPI considers the trend in the top 50 cities in India. The builders in India understand the trend in the Real Estate Market forms this index only. According to the trends in the National Housing Bank’s Housing Price Index for the period of Jan to March 2018, Lucknow registered the highest growth with the growth rate of 9.4%. The Housing Price Index for the under-construction properties registered a growth in 39 cities, a decrease in 10 cities and 1 city registered no change. The Index i.e. the RESIDEX showed that there was a growth in 34 cities, decrease in 8 cities while the 8 cities showed no change.

The rise is in the continuation of the trends of the previous quarter which had also registered an increasing trend. In the quarter ending October – December 2017, the HPI showed an upward trend in 32 cities, decrease in 10 cities while 5 cities registered no change. Similarly, the RESIDEX for the same period showed growth in 22 cities, downwards trend in 5 cities and no change in 22 cities. This rise is basically due to the SENSEX bleeding continuously and investors are removing their investment from the money market and buy apartment in India. 

Out of the 8 property markets in India, 7 property markets registered an upward trend for the quarter ending March 2018, except for Pune Property Market. Kolkata registered the highest growth of 8.5% followed by Hyderabad with 5%, Mumbai with 3.8%, Delhi with 3.3%, Bangalore with 2.3%, Ahmadabad with 2.2%, and Chennai with 0.7%. The Pune, on the other hand, registered a negative growth rate of 1.4% when compared to the previous year. The luxury apartments in India saw a rise in demand in these premium cities of India.

According to the official HPI, 39 cities registered an upward trend in which significant growth was seen in the city of Lucknow with an upward change of 9.4% followed by Panel with 8.6%, Kolkata with 8.5%, Indore with 7.1%, Thane with 6.5%, Chandigarh with 6.4% and marginal change in the cities of Thiruvananthapuram, Chennai and Chakan which registered 0.7% growth each. Gandhinagar did not register any change. Of the 10 cities that showed a downfall, Patna led the list with 12.2% downfall followed by Faridabad with 7.1%, Vadodara with 3.5%, Rajkot with 1.8%, Bhopal and Howrah with 1.7%, and Pune with 1.4%. The marginal decrease was seen in the cities of Vasai-Virar with 0.9%, Meerut and Nashik with 0.8%.

The NHB RESIDEX was an initiative taken by the National Housing Bank (NHB) on the behalf of the Ministry of Finance, Government of India. The cities have been divided into 3 tiers based on its population. Just as Tier I contain 50 cities, Tier II contains 29 cities and Tier III contains 13 cities.