Presentation on
NHB RESIDEXStatus, Challenges and Way Forward
NEW DELHI
MAY 31, 2013
Formulation and updating RESIDEX
 NHB RESIDEX was launched in July, 2007 – India’s first official
residential property index covering period upto 2005 taking 2001 as Base
Year for 5 cities viz. Bangalore, Bhopal, Delhi, Kolkata and Mumbai
 Subsequently RESIDEX was updated to cover two more years i.e. up to
Dec. 2007 with 2001 as base year.
 From the quarter January-March, 2010 NHB RESIDEX is being updated
on quarterly basis with 2007 as Base Year as against the earlier half-yearly
updation.
RESIDEX Cont….
 Expanded to 5 new cities from the quarter of January – March,
2012 taking the total number of cities covered to 20.
 The Index for Delhi includes property transactions of Gurgaon,
Noida, Greater Noida and Ghaziabad thereby expanding its coverage
to National Capital Region (NCR).
 In the ensuing Silver Year, we have added six new cities to the NHB
RESIDEX taking the total number of cities covered to 26.
 The latest update of NHB RESIDEX for the quarter January-March,
2013 is for 26 cities including 6 new cities namely Chandigarh,
Coimbatore, Dehradun, Meerut, Nagpur and Raipur.
Chairman of UBI , CMD , NHB and other dignitaries in Nodal officers Meet at Kolkata
Chairman of IOB and CMD , NHB in Nodal officers Meet at Chennai
Scope and Coverage of the Index
 At present, NHB RESIDEX covers residential properties.
 NHB RESIDEX is a step in the direction of building up a large
and reliable database of housing prices and related information
on housing and housing finance.
 The Initiative, as it evolves will seek to bring greater
transparency in the property market.
Achievements under RESIDEX
 NHB RESIDEX is regularly covered in Economic Survey of GoI
 It has replaced the Cost of Construction Index for revising the
Income limits of EWS/LIG households. MoHUPA used RESIDEX
in assessing the inflation in housing sector.
 Latest releases of NHB RESIDEX are widely covered in the media
 And it is shared with all the stakeholders
Uses of NHB RESIDEX
 The index will aid the home buyers in their purchase decisions
by enabling comparison between cities, their localities and
comparison of a price rise in a particular city and localities,
over time.
 One of the major considerations in housing finance is the
proper assessment of the value of property which is being
financed by banks and HFCs. NHB RESIDEX can be a useful
indicator to estimate the value of property to be financed and
also assess the adequacy of security cover on the outstanding
loan.
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Uses of NHB RESIDEX
 Observers can also identify the potential markets from the
movements of the NHB RESIDEX at the city level.
 Builders and developers may also benefit from the index by
assessing the demand scenario in a locality, and mapping the
housing needs in different parts of the country.
 NHB RESIDEX may be useful to policy makers, banks,
housing finance companies, builders, developers, investors
and individuals.
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Data -Size
 The data size with which Index is constructed is improving with every
quarter.
 The latest Index for the quarter January-March, 2013 was constructed
with approximately 45,000 transactions provided by 12 HFCs and 11
Banks namely Allahabad Bank, Canara Bank, Oriental Bank
of Commerce, Punjab National Bank, State Bank of India,
United Bank of India, Bank of India, Punjab and Sind Bank,
Indian Bank, State Bank of Patiala, Syndicate Bank
 18 Public Sector Banks have appointed the Nodal officers as one-point
contact for this exercise and will be working towards the submission of
data .
CITYWISE INDEX
Cities
Base Jan-Mar Apr –
Year
2011
Jun
(2007)
2011
July –
Sept
2011
Oct–
Dec
2011
Jan- Apr-June July-Sept Oct-Dec
Mar
2012
2012 2012
2012
Jan-Mar
2013
Hyderabad
100
83
91
84
79
86
85
84
90
88
Faridabad
100
165
220
206
218
217
217
216
205
207
Patna
100
146
146
141
140
129
140
138
151
152
Ahmedabad
100
165
169
163
167
164
174
180
191
192
Chennai
100
218
248
271
296
304
309
312
314
310
Jaipur
100
67
64
65
64
80
78
85
87
112
Lucknow
100
157
160
154
165
164
171
175
189
183
Pune
100
148
150
169
184
181
200
201
205
221
Surat
100
128
149
139
152
144
145
138
150
140
Kochi
100
86
107
97
82
72
73
80
87
89
Bhopal
100
167
224
208
211
204
207
206
216
230
Kolkata
100
211
194
191
190
191
196
191
209
197
Mumbai
100
175
181
194
193
190
197
193
217
222
Bengaluru
100
88
92
93
100
92
100
98
106
109
Delhi
100
126
147
154
167
168
172
178
195
202
CITYWISE INDEX
Cities
Base Year
(2007)
Jan-Mar
2012
Apr-June
2012
July-Sept
2012
Oct-Dec 2012 Jan-Mar 2013
Bhubneshwar
100
161
164
168
172
197
Guwahati
100
157
159
158
166
153
Ludhiana
100
163
171
168
179
167
Vijayawada
100
184
186
181
185
184
Indore
100
208
203
196
194
195
Chandigarh
100
194
Coimbatore
100
184
Dehradun
100
183
Meerut
100
191
Nagpur
11
Raipur
100
163
100
156
LATEST PRESS RELEASE
 Rising Trend: Residential housing prices in 12 cities have shown increase in prices
in this quarter ended March, 2013 (January-March, 2013) over the previous
quarter ended December, 2012 (October-December, 2012). Maximum increase
was observed in Jaipur (28.74%) followed by Bhubneshwar (14.54%), Pune
(7.81%), Bhopal (6.49%), Delhi (3.59%), Bengaluru (2.83%), Mumbai (2.31%),
Kochi (2.30%), Faridabad (0.98%), Patna (0.67%), Ahmedabad (0.53%) and
Indore (0.52%).
 Declining Trend: 8 cities have shown decline in prices over the previous quarter
with maximum fall observed in Guwahati (-7.84%) followed by Ludhiana (-6.71%),
Surat (-6.67%), Kolkata (-5.75%), Lucknow (-3.18%), Hyderabad (-2.23%),
Chennai (-1.28%) and Vijaywada (-0.54%).
 New Cities: All 6 new cities have shown increase in the prices compared to the
Base Year 2007 with maximum increase witnessed in Chandigarh (94%) followed by
Meerut (91%), Coimbatore (84%), Dehradun (83%), Nagpur (63%) and Raipur
(56%).
Way Forward
 To involve maximum number of HFIs and increasing the volume of
transaction data to make the Index truly representative, broad based and
robust.
 To explore the possibility of updating the Index on monthly basis
 To construct an aggregate level National Index
 Detailed analysis of the existing methodology and considering the possibility of
shifting to a new BaseYear & new methodology
 The future proposal is to expand NHB RESIDEX to 63 cities which are covered
under the Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) to
make it a truly national index.
 To do other related studies and research
THANKYOU