Home
Home      »    NHB Residex

Property

NHB Residex

 

In the recent years the real estate and the housing sectors have been one of the prime areas for generating both financial and physical assets, that would in turn contribute to gross National Wealth accumulation. Hence keeping this in mind there was a need in order to create and monitor a mechanism or process that would regulate and keep a watch on price shifts that the housing segment experiences. The National Housing Bank as directed by the Finance Ministry researched in order to determine the feasibility of organizing such an index is possible nationally. Thus, based on the results of the pilot study that was conducted the NHB Residex was launched for regulating and tracking the price structure of the residential holding or properties in India.
 
NHB Residex Structure
 
Presently NHB Residex is being operated and governed only for the residential housing segment. Going forward, at a more matured stage perhaps the same would be expanded for a wider expanse. The scope and opportunities of the same then can be further expanded for separate domains like commercial land holdings as well as properties. The same can be put together to determine the real price cost index.
 
Features of the NHB Residex
 
The important and the salient features of the NHB Residex can be explained as below :-
 
  • The original prices for transactions for the study are considered that would later reflect the market patterns and trend.
  • The year 2001 was considered as the foundation year of the study. This was compared with the CPI and WPI. The price changes on a year –to-year basis has been analyzed and projected in the study, and was updated till 2007.
  • The pilot study thus included 5 cities, which are Kolkata, Bhopal, Mumbai, Bangalore and Delhi that was representing the different regions across the country.
  • The initial inputs on the housing costs was accumulated from the real estate agents. These data was in turn taken from the private consultancies by offering them incentives as well as commissions.
  • The NHB Residex has been spread out, that covers ten more cities now. They are namely Surat, Ahmedabad, Chennai, Pune, Faridabad, Kochi, Lucknow, Hyderabad, Patna and Jaipur.
  • The NHB Residex has been developed based on the average weighted methodology in the Price Relative Method.
  • Going forward, the index has the year 2007’s information at the base. The NHB Residex has been upgraded to 2009.
  • In its first phase the NHB Residex was spread over 35 cities with over a million population.
  • The index is planned to be updated half yearly at the present.
  • The recent proposal with the NHB Residex is to extend the same to 63 cities.
  • The cost structures have been well researched for differ property tax zones, administrative zones comprising each city.
 
NHB Residex – The future
 
Presently the NHB Residex has completed its mandate of covering 15 cities in the initial phase. It aims at covering 35 cities in the near future. The agenda here is to develop an index for residential plot in the Indian cities to project the changes in the house prices at various levels and circumstances. Attempts are being taken to make it more useful keeping in mind the Indian scenario of the housing market. Consistent attempts too are being taken to update it from time to time. At the same time a team has been assigned in order research on the probable areas that can be identified for the index to expand do. Keeping this mind the team is undertaking an in-depth research on the commercial land holdings and properties in India. Attempts and initiatives are made in the direction in making the NHB Residex more useful to people with substantial details as well as relevant inputs.