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National housing boar - residex - returns in cities


National housing boar - residex - returns in cities

Last updated: July 15 2010
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  • National housing boar - residex - returns in cities

    NHB Residex About Residex Keeping in view the prominence of housing and real estate as a major area for creation of both physical and financial assets and its contribution in overall National wealth, 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. Accordingly, National Housing Bank, at the behest of the Ministry of Finance, undertook a pilot study to examine the feasibility of preparing such an index at the National level. The pilot study covered 5 cities viz. Bangalore, Bhopal, Delhi, Kolkatta and Mumbai. Besides, a Technical Advisory Group (TAG), with Adviser, Ministry of Finance, as its Chairman and comprising of experts members form RBI, NSSO, CSO, Labour Bureau, NHB and other market players, was constituted to deal with all the issues relating to methodology, collection of data and also to guide the process of construction of and appropriate index . Based on the results of the study and recommendations of the TAG, NHB launched RESIDEX for tracking prices of residential properties in India, in July 2007 by Shri P. Chidambram (then Hon’ble Finance Minister). Till now it has been updated up to December 2009.

    Launching of NHB RESIDEX on 10th July, 2007Salient Features
    • Pilot study covered 5 cities viz. Delhi, Mumbai, Kolkata, Bangalore and Bhopal representing the various regions of the country.
    • Actual transactions prices considered for the study in order to arrive at an Index which will reflect the market trends.
    • 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.
    • NHB RESIDEX has been expanded to cover ten more cities, viz, Ahmedabad, Faridabad, Chennai, Kochi, Hyderabad, Jaipur, Patna, Lucknow, Pune and Surat.
    • Further, with 2007 as base, NHB RESIDEX has been updated up to June, 2009 with half yearly update (July - December ,2009 ).
    • 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.
    • NHB RESIDEX will be up dated on half yearly basis, for the present.
    • In the first phase NHB RESIDEX will be expanded to cover 35 cities having million plus populating.
    • 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.
    HB Residex Base Year: 2007 = 100 Delhi | Bangalore | Mumbai | Kolkata | Bhopal | Hyderabad | Faridabad | Patna | Ahmedabad | Chennai | Jaipur | Lucknow | Pune | Surat | Kochi

  • #2


    Re : National housing boar - residex - returns in cities

    Originally posted by HB Residex Base Year: 2007 = 100 [URL=""
    noida and gurgaon dta is missing which would have intrested all...

    surprising calcutta has highest returns ..


    • #3


      Re : National housing boar - residex - returns in cities

      Ya it shall not be surprsing the retruns for KOL is max.

      Few years back the supply in KOL was very high with very less demand which was the prime period for investing. But since then then demand has increased therby increasing the price.
      Future is not very rosy for KOL.


      Have any questions or thoughts about this?