Correction in Housing prices to Continue: National Housing Bank

National Housing Bank (NHB), the regulator for housing finance companies (HFCs), recently said there has been price correction in the housing market &it is likely to continue in some pockets, including the National Capital Region (NCR) region.

"There has been softening of prices in the housing market in some cities including NCR region. This trend may continue for some time,"

NHB Chairman &  Managing Director Mr. R. V. Verma said after releasing Report on Trend and Progress of Housing in India for 2012.

In the NCR, Mr. R. V. Verma said, price correction has happened due to over supply. Some more correction may take place in the coming days.

He, however, said it is difficult to predict by how much prices could correct.

Citing trend from the latest Residex, Verma said, there has been 3 to 4% decline in the housing prices in the 11 cities but prices rose marginally or remained stabled in 9 cities.

Mr. R. V. Verma also said the housing sector would witness a growth of 20% cent during the current fiscal 2012-13 against 17% cent in the previous fiscal 2011-12.

"Demand drivers include the growing middle class, income levels of the people, cyclical conditions, urbanisation," Mr. R. V. Verma added.

The demand would also go up because of moderation in interest rate due to recent RBI monetary action.

The home loan market is nearly Rs 6.61 lakh crore at the end of March 2012. Of this, HFCs contribution was about Rs. 2.60 lakh crore.

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