The index will enable homebuyers, investors, real estate developers and policymakers to track high-frequency price movement in India's key residential markets
Hyderabad: Housing.com along with Indian School of Business (ISB), launched Housing Pricing Index (HPI), an indicator of economic activity in real-estate, the second-largest employment generating sector in India after agriculture.
Launched during a virtual meet attended by Union Housing & Urban Affairs Secretary, Durga Shanker Mishra and several industry leaders and academicians, the HPI will provide monthly reports on price and quantity movement in various property markets across the country.
The HPI, created in association with the Indian School of Business’ (ISB) Srini Raju Centre for IT and the Networked Economy (SRITNE), aims to serve as a tool that tracks changes in residential home prices across India’s eight major markets.
The index could help a potential home buyer assess the appropriate time to buy a property and at the same time assist sellers in knowing the most opportune moment to sell their assets. Policymakers and financial analysts can also use it as a reliable estimate to keep track of the trends in the sector.
Based on a survey of cities such as Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune from 2017 to the present, conducted every quarter, the Elara Technologies-owned company’s HPI uses granular prices from localities and their corresponding weights based on transaction value share of that locality in India, basing its findings on 1, 2, and 3-BHK apartments.
Durga Shanker Mishra, secretary, Ministry of Housing and Urban Affairs, Government of India, said: “The real-estate sector has been impacted due to the Covid-led slowdown and overall uncertainty. At this time, it is essential to track the growth via credible sources that will help authorities make quicker and informed decisions during such exogenous shocks. We have observed that the demand has already picked up in Q1 2021 and the sector has started to show signs of recovery.”
“Buyers as well as policymakers are mostly forced to rely on market anecdotes and guesswork about property price movements in Indian cities in the absence of quality high-frequency data, especially locality specific data. The entire idea behind the launch of the Housing HPI is to address this issue,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com.
Rajendra Srivastava, dean, ISB, said, “This index would help decision-makers in the industry and government by providing relevant information on the real estate market and design effective action and interventions.”
Dr Niranjan Hiranandani, National President, Naredco, said, the index will bring transparency and narrow down the trust deficit between all the concerned industry stakeholders.
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