An Initiative of the National Housing Investment A Review

Abstract

Housing Investment is an initiative of the National Housing Bank to provide an index of residential prices in India across cities and over time. At the behest of the ministry of finance, Government of India, began this initiative in the year 2005-06 and further undertook a pilot study to examine the feasibility of preparing such an index at the national level. NHB launched RESIDEX for tracking prices of residential properties in India, in July 2007, covering data up to 2005 with 2001 as the base year. The pilot study covered 5 cities viz. Bangalore, Bhopal, Delhi, Kolkata and Mumbai. They  are  Surat  (24  per  cent),  Mumbai  (19  per  cent),  Lucknow  (19  per  cent),  Ahmedabad  (16  per  cent), Chennai (12 per cent), Pune (8 per cent), Kolkata (6 per cent), Bangalore (6 per cent), Kochi (4 per cent), Delhi (3  per  cent)  and  Hyderabad  (1  per  cent).  Surat  (24  per  cent)  has  shown  the  maximum  increase  followed  by Mumbai  and  Lucknow(19  per  cent).  There  are  4  cities  which  have  shown  correction  in  prices  over  the previous quarter which are namely Jaipur (-9 per cent), Bhopal (-4 per cent), Patna (-3 per cent) and Faridabad (-1 per cent). Jaipur (-9 per cent) has shown the maximum price correction in residential property prices.