PHASE I- GENERAL AWARENESS
PHASE II- FINANCE AND MANAGEMENT
TOPIC- FINANCIAL INSTITUTIONS- NHB
|A need was felt for setting up of a mechanism, which could track the movement of prices in the residential housing segment.
Regular monitoring of the house prices can be useful inputs for the different interest groups.
NHB launched RESIDEX for tracking prices of residential properties in India, in July 2007.
NHB RESIDEX: Salient Features
- Pilot study covered 5 cities viz. Delhi, Mumbai, Kolkata, Bangalore and Bhopal representing the various regions of the country.
- 2001 was taken as the base year for the study to be comparable with the WPI and CPI. Year to year price movement during the period 2001-2005 has been captured in the study, and subsequently updated for two more years i.e. up to 2007.
- Thereafter, NHB RESIDEX was expanded to cover ten more cities, viz, Ahmedabad, Faridabad, Chennai, Kochi, Hyderabad, Jaipur, Patna, Lucknow, Pune and Surat.
- At the time of last updation and expansion of coverage of NHB RESIDEX to 10 more cities, the base year has been shifted from 2001 to 2007.
- From quarter January-March, 2012, NHB RESIDEX has been further expanded to cover 5 more cities viz Bhubneshwar, Guwahati, Ludhiana, Vijayawada & Indore.
- The Index for Delhi has been expanded to cover Gurgaon, Noida, Greater Noida and Ghaziabad thereby expanding its coverage to National Capital Region (NCR). Thus, from April-June, 2012 onwards the Index of Delhi would cover National Capital Region (NCR).
- Further, NHB RESIDEX has been expanded to include six (6) new cities namely Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur from the quarter January-March, 2013 thereby taking the total of number of cities covered to 26.
- The proposal is to expand NHB RESIDEX to 63 cities which are covered under the Jawahar Lal Nehru National Urban Renewal Mission to make it a truly national index.
- Prices have been studied for various administrative zones/property tax zones constituting each city.
- The index has been constructed using the weighted average methodology with Price Relative Method (Modified Laspeyre’s approach).
- Primary data on housing prices is being collected from real estate agents by commissioning the services of private consultancy/research organisatons of national repute; in addition data on housing prices is also being collected from the housing finance companies and bank, which is based on housing loans contracted by these institutions.