Housing Price Index In India 2021
With rapid urbanization and the increase in demand for properties, especially the residential sector the need to track and monitor the changes in the prices has become necessary. So, the National Housing Bank has introduced an index called the NHB Residex in 2007, for 26 major cities in India. It was, however, discontinued in 2015 only to be re-introduced in 2015. The Housing Price Index 2021 now monitors 50 cities and gradually aims to scale up to 100 cities in the country. The new base year is 2012-13 and new sources of information like market surveys, data from banks and financial institutions, etc. are being used to calculate the Housing Price Index 2021.
The Housing Price Index 2021 serves the purpose of understanding the customer requisites and providing affordable housing to the urban and sub-urban migrant population in the current economic scenario. The demand-pull inflation has brought up the prices of the residential real estate sector to unbelievably high numbers and without any regulations, the rise was haphazard.
For developers, the Housing Price Index 2021 acts as an indicator of the demand rise and fall and the per capita spending interest of the consumers. For customers, the index as an official source of information which can be used to compare and contrast prices before completing the documentation.
On a global level, adjusting to the inflation and the exchange rates, the Housing Price Index is measured as the change in the price of residential housing as percentage change from a specific start date. Accordingly, the countries are given rankings. India’s position has dropped to 55th rank in Q1 of 2021 as opposed to it being 43rd in Q1 of 2020.
The RBI has released the HPI for the Q1 of 2021, which has seen an increase in 2.7% as opposed to 3.9% for Q1, 2020. The HPI has improved in most of the cities in the country reviving the hopes of many realtors and developers. The HPI data is released by the RBI based on the housing registration data in the respective cities.
The RBI has released the Housing Price Index for the Q1 of 2021, which has seen an increase in 2.7% as opposed to 3.9% for Q1, 2020. The HPI has improved in most of the cities in the country reviving the hopes of many realtors and developers. The HPI data is released by the RBI based on the housing registration data in the respective cities.
There are two types of Housing Price Index as calculated by the NHB:
Market HPI- Prices of under-construction properties collated through a survey of developers
Assessment HPI- Data reported by banks and finance companies that extended housing loans
A shifting pattern in growth automatically leads to a shifting pattern in consumer demands. The NHB ensures that all the consumer demands are catered to, stream-lining the process of research and constructing demand-centric properties.
The many economic decisions like Demonetisation, have impacted the demand of the residential properties but not the prices. However, the COVID-19 pandemic has adversely impacted the real estate sector.
The year-on-year fall in the HPI is 1.6%. This indicates that the demand-centric sector has seen a fall in prices. However, on the Global Housing Price Index, India gained a position and improved its rank to 55th position among other nations. The Global Housing Price Index ranks 56 nations according to their housing prices adjusted to inflation. India has considerably been at the last in the list for the past three quarters as compared to its 43rd position in Q1 of 2020. Irrespective of the rankings, India has recovered from the downward spiral and the sales have improved considerably.
5,899 / Sq. Ft.
4,200 / Sq. Ft.
4,500 / Sq. Ft.
4,500 / Sq. Ft.
4,500 / Sq. Ft.
4,800 / Sq. Ft.