Homebuyers, real estate developers, and policymakers will be able to track the high-frequency price flow in the major residential markets in India through the HPI (Housing Pricing Index) together with the industrial company NAREDCO.
New Housing Pricing Index
The Union Housing and Urban Affairs Secretary Durga Shanker Mishra stated that Housing Price Index has been developed jointly by industry experts and can be a good indicator of real estate in the country. Because of the COVID-led slowdown and overall uncertainty, the real estate sector has suffered. At present, tracking growth through credible sources is essential, thereby helping authorities make quicker and informed decision-making during such economic fluctuations.
The index will be used to decide the future course of action for both homebuyers and policymakers. It also has its home prices index for the National Housing Bank (NHB).
This is a tool that traces the changes in residential home prices in all eight of India's major markets. HPI was established in partnership with the Indian School of Business (ISB) Srini Raju Centre, IT and the Networked Economy (SRITNE).
The index could help a prospective homebuyer to evaluate the right time to buy a property and help sellers to know the most appropriate time to sell their properties by providing useful information on price movements. It can also be used as an affordable estimate by policymakers and financial analysts to track industry trends.
In the absence of high-frequency data of high quality (especially local data), buyers and policymakers are mainly forced to rely upon market observations and guess about price movements in Indian cities. The whole idea behind the HPI's launch is to tackle this problem. In addition to buyers, investors, and policymakers who benefit, the HPI data will also provide immensely valuable information for real estate developers who consider launching new developments in a new location.
This index would help industry and government decision-makers to provide relevant information on the real estate market and design effective measures and interventions.
Niranjan Hiranandani, national president, NAREDCO, founder and MD - Hiranandani Group, stated that The Index will address the challenge of lack of well-defined data and foster enterprises with the right business intelligence, market insight, trends, and desires to sign wise decisions.
By: Shailaja K