NHB Residex indicates fall in prices of property in Kochi
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The index has been expanded with the inclusion of Kochi and several other cities.
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The National Housing Bank (NHB) has brought out an expanded version of NHB Residex, the first official index of residential property prices in the country, after including Kochi, Chennai and eight other cities.
The first version of the national price index for residential property prices, released in July 2007 by the then Finance Minister, P. Chidambaram, included just five cities — Bangalore, Bhopal, Delhi, Kolkata and Mumbai. The expanded list of cit
ies now also includes Hyderabad, Faridabad, Patna, Ahmedabad, Jaipur, Lucknow, Pune and Surat.
The NHB Residex for Kochi has 2007 as the base year, a shift from the pilot work where the base year was 2001, and indicates a fall in the price of residential property in several locations across Kochi.
The price index is available for 2007, the first half of 2008 (January to June) and for the second half of 2008 (July to December).
On an average, the index has dropped for Kochi from 100 (2007=100) to 95 in the second half of 2008, the first half having seen a jump to 106.
A split-up of the important localities shows that property prices have not behaved uniformly.
For example, areas such as Fort Kochi, Veli, Karugapally, Vennala and Mamangalam saw the index moving up to 109 in the first half of 2008 only to see it slip to 104 in the second half.
Similarly, index for Elamakkara North, Pudukkalavattam, Vyttila and Amaravati fell to 98 and 96 in the first and second halves of 2008, respectively.
The index has moved up to 104 for Palarivattam, Karanakkodam and Chalikkavattam in the first half of last year. The number fell to 103 in the second half for residential property in these locations.
Information posted on the NHB web site said that the Technical Advisory Group, which oversaw the preparation of Residex, had experts drawn from a wide spectrum of activities to deal with issues such as methodology and data collection.
Commercial property
As NHB moves full steam ahead with preparation of Residex for more cities, it is confident of developing a separate index to include commercial property prices in the near future.
The National Housing Bank has taken the actual transaction prices to arrive at “an Index, which will reflect the market trends.” The index will be updated on a half-yearly basis.
Residential property prices have been studied at various levels to draw up the index.
K.A. MARTIN
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