National Housing Bank report has Pune property prices in deep freeze
Even as cities like Kolkata, Hyderabad, Mumbai, Delhi, Bengaluru, Ahmedabad and Chennai have shown growth, Pune witnessed a dip of 1.4 per centpune Updated: Jul 05, 2018 16:57 IST
While the top property markets in the country have shown annual growth in property prices, Pune has recorded a downward trend, according to National Housing Bank’s Housing Price Index(HPI) for under-construction properties. A total of 50 cities spread across 21 states in India are assessed.
According to HPI, certain cities have registered a growth - Kolkata recorded 8.5 per cent increase, Hyderabad 5 per cent, Mumbai 3.8 per cent, Delhi 3.3 per cent , Bengaluru 2.3 per cent , Ahmedabad 2.2 per cent and Chennai recorded 0.7 per cent increase, while Pune saw prices decline 1.4% from last year.
The NHB RESIDEX is India’s first official housing price index, undertaken at the behest of the Government of India, Ministry of Finance, launched in July 2007, to track the prices of residential properties in select cities on a quarterly basis, with a view to reflect the current macroeconomic scenario. The prices of residential properties are tracked on a quarterly basis and they are classified on the basis of carpet area at the city level, which are then computed using Laspeyres methodology.
Builders body, Credai Pune Metro stated that while it is true that prices have gone down from 6 to 8 per cent, but sold inventory data is bit questionable because the number of sales that Pune is seeing is of 75,000 units a year which is 5 to 10 per cent more, equal to the previous year, but the unsold inventory has gone down because of no new launches.
Ranjeet Naiknavare,vice president, Credai Pune Metro said, “The housing unit sizes on an average have dropped from 950 sq ft to 780 sq ft, post demonetization, thus sale of units under ₹40 lakhs has gone up from 0.48 per cent to 0.53 per cent. For the number of units in lower value, the sale has increased, while units between ₹40 and ₹80 lakhs, it was at 0.4 per cent, now it has come down to 0.39 per cent. While for units above ₹80 lakh to ₹1.5 crores, it has come down to 0.57 per cent from 0.82 per cent. Thus it shows that the proportion of flats of lower value has gone up and luxury segment is stagnant.”
According to the NBH, there is an overall year-on-year increase in prices of residential properties in 39 cities, decrease in 10 cities and no change in one city, while it showed increase in 34 cities, decrease in 8 cities and no change in 8 cities on sequential basis during the quarter January to March 2018.
There is a significant rise in property pricing in 39 cities showing an upward trend according to India’s official housing price index with Lucknow at 9.4%, Panvel at 8.6%, Kolkata at 8.5%, Indore at 7.1%, Thane at 6.5% and Chandigarh at 6.4%, while marginal annual increase in index was witnessed in 3 cities including Thiruvananthapuram, Chennai and Chakan at 0.7% each.
Of the 29 tier-II cities being covered, maximum increase in indices was seen in Lucknow followed by Indore at 7.1% and Chandigarh at 6.4%, while maximum decrease was seen in Patna at 12.2%, Faridabad at 7.1% and Vadodara at 3.5%, on year-on-year basis. On sequential basis, Gurugram with 2.8%, Dehradun with 2.6%, Kochi and Nagpur with 2.4% each witnessed increase while Faridabad with 3.3%, Thiruvananthapuram with 2.8% and Vadodara with 1.8% witnessed maximum decline.
First Published: Jul 05, 2018 16:57 IST