RESIDEX for Chennai
The year 2007 is taken as the base year and the movement of housing prices are tracked with respect to this year.
Hence, it can be seen that the 2008 housing price index in cities such as Bangalore has dropped more than Chennai with respect to the year 2007 values.
This explains not only variations between cities, but also that of zones within each city.
Raj Pal , Principal Advisor to the NHB told The Hindu Property Plus that cities that have oriented more towards IT industry show more downward trend than cities that have had multiple focus.
The RESIDEX figures across various zones in Chennai understandably show different trends. The 2007 values of these zones have not been the same and they have moved in different directions since then. The RESIDEX figures attempts to capture it.
While some of the zones such as Zone 9 comprising Kodambakkam, Guindy and Chrompet have dropped significantly from 100 in 2007 to 69 between July and December 2008, Zones such as Zone 4 and 1 have gained significantly.
Raj Pal explains that ‘besides the obvious wealth effect and implications for households, at the macro economy level, housing prices have emerged as good indicators of inflation and financial health, which can be useful in developing appropriate monetary policy responses.’
‘This will also help understand the determinants of the housing prices, assess a housing bubble and measure the role of liquidity in housing price increase,’ he adds.
The detailed housing price index of various zones in various cities can be found at http://nhb.org.in/Residex/
- Staff Reporter
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