NHB Residex shows rise in housing prices of 18 cities
National Housing Bank (NHB) finally released their Residential Housing Price Index for the quarter of April-June 2014, after delay of one month in the release. NHB’s Residex has housing prices of 26 cities. This year Mumbai, Pune, Coimbatore and Indore have shown a marginal increase in the range of 0.5-3.9% during the April-June quarter this year compared to the previous quarter. The prices in 6 cities including Delhi declined during the same quarter 2014, while in rest, the prices were stagnant. Rising Trend: Residential housing prices in 18 cities have shown increase in prices in this quarter ended June, 2014 (April-June, 2014) over the previous quarter ended March, 2014 (January-March, 2014). Maximum increase was observed in Pune (3.9%) followed by Coimbatore (3.5%), Indore (3.3%), Guwahati (3.2%), Patna ( 2.7%), Kolkata ( 2.4%), Ahmedabad (1.91%), Vijayawada (1.88%), Mumbai (1.75%), Chennai ( 1.72%), Ludhiana (1.4%), Bhopal (1.3%), Kochi (1.2%), Jaipur (0.99%), Faridabad (0.96%), Bengaluru (0.93%), Nagpur (0.6%) and Bhubaneswar (0.5%). The maximum increase was observed in Pune by Coimbatore then Indore, Guwahati, Patna, Kolkata and Bhubneshwar, Mumbai showed the least rise. Declining Trend: 6 cities have shown decline in prices over the previous quarter with maximum fall observed in Chandigarh (- 4.4%) followed by Meerut (-3.6%), Delhi (-3.0%), Surat (-2.4%), Dehradun (-2.1%), and Lucknow (-0.5%). Indices for 2 cities namely Hyderabad and Raipur have remained stagnant. The Residex is expected to bring greater uniformity and standardisation as well as greater transparency in the valuation of properties across the industry. The realty sector is facing a period of low sales and high inventory coupled with funding issues. The market has started showing signs of revival with little uptake in sales during the start of festival season this year but experts say a full revival is 6-9 months away.