Housing Prices Up in Nine cities: National Housing Bank

Showing a mixed trend, apartment and housing prices in 9 Indian major cities, including Kochi, Jaipur  increased by up to 10 % during July to September, 2012 period, while rates in 11 other places including Bangalore & Kolkata declined by up to 5%, according to NHB (National Housing Bank).

Kochi saw the highest price rise of 10.1%, followed by Jaipur with 9% during the second quarter of this fiscal compared with the previous quarter.

In Delhi-NCR, Mumbai & Chennai, prices rose by 3.8%, 0.5 % and 1%, respectively, NHB data showed.

NHB RESIDEX tracks the movement in prices of residential properties on a quarterly basis. It covers 20 cities. From January next year, it plans to cover 6 (six) more cities.

Oversupply..!

Mr. R. V. Verma, Chairman and Managing Director, NHB told PTI. "Overall, there is a price correction. Even in nine cities where prices have gone up, there will be net decline if we factor in the rise in input cost & inflation. Builders can not sustain at current prices because of oversupply. So, they are decreasing the price to clear inventory &  boost sales."

In India, Housing demand has been affected for past few years due to high interest rates on housing loans.

The movement in prices of residential properties has shown marginally declining trend in eleven (11) cities, ranging from - 0.4% in Faridabad to - 4.8% in Surat, and rise in nine (9) cities ranging from 0.5% in Mumbai to 10.1% in Kochi during July to September, 2012 in comparison to the previous quarter April to June 2012..

Ahmedabad saw 3% rise, Bhubaneshwar 2.3%, Lucknow 2.2%, Chennai 0.8%, Pune 0.7%.

Prices fell the maximum in Surat ( - 4.8%), followed by Indore at - 3.54%, Kolkata - 2.4%, Vijayawada  - 2.4%, Patna  - 1.8 %, Ludhiana - 1.7%, Bangalore -1.7 %, Hyderabad - 1.3%, Guwahati - 0.7%, Bhopal  - 0.5% and Faridabad - 0.4%.

The prices have started to decline in some smaller towns & the increase in other cities is mostly marginal, barring Kochi & Jaipur.

There is some signs of convergence of prices around this level across the 20 cities in India.

Price Increased Cities..!*

Kochi                 10.1%

Jaipur                    9%

Delhi-NCR              3.8%

Ahmedabad            3%

Bhubaneshwar        2.3%

Lucknow                2.2%

Chennai               0.8%,

Pune                     0.7%

Mumbai                 0.5 %

*July to September, 2012 in comparison to the previous quarter April to June 2012

Price Declined  Cities*

Faridabad - 0.4% 

Bhopal  - 0.5%

Guwahati - 0.7%

Hyderabad - 1.3%

Ludhiana - 1.7%

Bangalore -1.7 %

Patna  - 1.8 %

Kolkata - 2.4%

Vijayawada  - 2.4%

Indore  - 3.54%

Surat  - 4.8%

*July to September, 2012 in comparison to the previous quarter April to June 2012

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