NHB RESIDEX- Status, Challenges and Way Forward Presentation on NEW DELHI MAY 31, 2013

Formulation and updating RESIDEX NHB RESIDEX was launched in July, 2007 – India’s first official residential property index covering period upto 2005 taking 2001 as Base Year for 5 cities viz. Bangalore, Bhopal, Delhi, Kolkata and Mumbai Subsequently RESIDEX was updated to cover two more years i.e. up to Dec with 2001 as base year. From the quarter January-March, 2010 NHB RESIDEX is being updated on quarterly basis with 2007 as Base Year as against the earlier half-yearly updation.

RESIDEX Cont…. Expanded to 5 new cities from the quarter of January – March, 2012 taking the total number of cities covered to 20. The Index for Delhi includes property transactions of Gurgaon, Noida, Greater Noida and Ghaziabad thereby expanding its coverage to National Capital Region (NCR). In the ensuing Silver Year, we have added six new cities to the NHB RESIDEX taking the total number of cities covered to 26. The latest update of NHB RESIDEX for the quarter January-March, 2013 is for 26 cities including 6 new cities namely Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur.

Chairman of IOB and CMD, NHB in Nodal officers Meet at Chennai Chairman of UBI, CMD, NHB and other dignitaries in Nodal officers Meet at Kolkata

Scope and Coverage of the Index At present, NHB RESIDEX covers residential properties. NHB RESIDEX is a step in the direction of building up a large and reliable database of housing prices and related information on housing and housing finance. The Initiative, as it evolves will seek to bring greater transparency in the property market.

Achievements under RESIDEX NHB RESIDEX is regularly covered in Economic Survey of GoI It has replaced the Cost of Construction Index for revising the Income limits of EWS/LIG households. MoHUPA used RESIDEX in assessing the inflation in housing sector. Latest releases of NHB RESIDEX are widely covered in the media And it is shared with all the stakeholders

Uses of NHB RESIDEX The index will aid the home buyers in their purchase decisions by enabling comparison between cities, their localities and comparison of a price rise in a particular city and localities, over time. One of the major considerations in housing finance is the proper assessment of the value of property which is being financed by banks and HFCs. NHB RESIDEX can be a useful indicator to estimate the value of property to be financed and also assess the adequacy of security cover on the outstanding loan. 7

Uses of NHB RESIDEX Observers can also identify the potential markets from the movements of the NHB RESIDEX at the city level. Builders and developers may also benefit from the index by assessing the demand scenario in a locality, and mapping the housing needs in different parts of the country. NHB RESIDEX may be useful to policy makers, banks, housing finance companies, builders, developers, investors and individuals. 8

Data -Size The data size with which Index is constructed is improving with every quarter. The latest Index for the quarter January-March, 2013 was constructed with approximately 45,000 transactions provided by 12 HFCs and 11 Banks namely Allahabad Bank, Canara Bank, Oriental Bank of Commerce, Punjab National Bank, State Bank of India, United Bank of India, Bank of India, Punjab and Sind Bank, Indian Bank, State Bank of Patiala, Syndicate Bank 18 Public Sector Banks have appointed the Nodal officers as one-point contact for this exercise and will be working towards the submission of data.

CITYWISE INDEX CitiesBase Year (2007) Jan-Mar 2011 Apr – Jun 2011 July – Sept 2011 Oct– Dec 2011 Jan- Mar 2012 Apr-June 2012 July-Sept 2012 Oct-Dec 2012 Jan-Mar 2013 Hyderabad Faridabad Patna Ahmedabad Chennai Jaipur Lucknow Pune Surat Kochi Bhopal Kolkata Mumbai Bengaluru Delhi

CITYWISE INDEX Cities Base Year (2007)Jan-Mar 2012 Apr-June 2012 July-Sept 2012Oct-Dec 2012Jan-Mar 2013 Bhubneshwar Guwahati Ludhiana Vijayawada Indore Chandigarh Coimbatore Dehradun Meerut Nagpur Raipur

LATEST PRESS RELEASE Rising Trend: Residential housing prices in 12 cities have shown increase in prices in this quarter ended March, 2013 (January-March, 2013) over the previous quarter ended December, 2012 (October-December, 2012). Maximum increase was observed in Jaipur (28.74%) followed by Bhubneshwar (14.54%), Pune (7.81%), Bhopal (6.49%), Delhi (3.59%), Bengaluru (2.83%), Mumbai (2.31%), Kochi (2.30%), Faridabad (0.98%), Patna (0.67%), Ahmedabad (0.53%) and Indore (0.52%). Declining Trend: 8 cities have shown decline in prices over the previous quarter with maximum fall observed in Guwahati (-7.84%) followed by Ludhiana (-6.71%), Surat (-6.67%), Kolkata (-5.75%), Lucknow (-3.18%), Hyderabad (-2.23%), Chennai (-1.28%) and Vijaywada (-0.54%). New Cities: All 6 new cities have shown increase in the prices compared to the Base Year 2007 with maximum increase witnessed in Chandigarh (94%) followed by Meerut (91%), Coimbatore (84%), Dehradun (83%), Nagpur (63%) and Raipur (56%).

Way Forward To involve maximum number of HFIs and increasing the volume of transaction data to make the Index truly representative, broad based and robust. To explore the possibility of updating the Index on monthly basis To construct an aggregate level National Index Detailed analysis of the existing methodology and considering the possibility of shifting to a new Base Year & new methodology The future proposal is to expand NHB RESIDEX to 63 cities which are covered under the Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) to make it a truly national index. To do other related studies and research

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