July to September 2013: Housing Price Rise 4.95% in Chennai City Report by NHB

Residential housing (Flat) prices have declined in 10 of 26 cities covered in the July-September 2013 quarter over the previous quarter, according to the National Housing Bank (NHB) Residential Housing Price Index (Residex).

The Residex aims to bring greater uniformity and standardisation as well as greater transparency in the valuation of properties.

Ten cities that have shown decline in prices over the previous quarter include Meerut (- 6.88 %), Delhi ( - 4.53 %), Ludhiana (- 4.46 %), Vijayawada (- 4.03 %), Nagpur ( -3.58 %), Bhopal (- 3.09 %), Indore (- 2.18 %), Jaipur (- 1.82 %), Bhubneshwar (-1.03 %) and Bengaluru (- 0.93 %).

Housing prices in 12 cities, including Kolkata (5.30 %), Chennai (4.95 %), Hyderabad (4.77 %), Ahmedabad (2.69 %) and Lucknow (2.14 %), have shown an increase.

Declining prices around the festive season indicates that buyer sentiment is at an all-time low. Further, slowd own in the economy & a weak job market has made buyers all the more jittery.

Most of them are adopting a wait-and-watch approach as pricing is unaffordable. However, it seems that the correction cycle has begun. But real estate being region specific, one may not witness a large scale correction at one go.

However, a synchronized correction which has happened in 10 cities now indicates that the pricing dynamics of the property market are likely to change for good.

  

    National Housing Bank

    Core 5-A, India Habitat Centre,

    Lodhi Road, New Delhi-110003

    (PBX) 011-2464 9031-35

    Fax : 011-2464 9030

    E-mail: ho@nhb.org.in

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