Mid, small size house price rise moderated more: RBI
It said the pace of growth in average house prices slowed in 2013-14 at 12.7 per cent, plausibly reflecting a correction in trends, on the back of subdued demand
Oct 11, 2014
Source : Business Standard


The Reserve Bank of India (RBI) said the price of houses in the small and medium size category has moderated more sharply as compared to the large size category.

In its monthly bulletin, it said the pace of growth in average house prices slowed in 2013-14 at 12.7 per cent, plausibly reflecting a correction in trends, on the back of subdued demand.

The index of house prices had been growing at an annual average rate of about 20 per cent (yoy) in 2011-12 and 2012-13. For the latest quarter, the yoy increase in the House Price Index at the all-India level was 11.4 per cent, compared to 10.5 per cent in the preceding one.

The Reserve Bank is compiling a quarterly house price index (base 2010-11=100) for 10 major cities -- Mumbai, Delhi, Chennai, Kolkata, Bangalore, Lucknow, Ahmedabad, Jaipur, Kanpur and Kochi. Based on these city indices, an average house price index representing all-India house price movement is also compiled. These indices are based on the official data of property price transactions collected from registration authorities of the respective state governments.

RBI said the growth in house prices had moderated in 2013-14 for Mumbai, Delhi, Kolkata, Jaipur and Kanpur. For instance, the price in Mumbai rose on an average annual basis by 30 and 18.5 per cent, respectively, for 2011-12 and 2012-13. This declined to 8.7 per cent in 2013-14.

However, in Bangalore and Ahmedabad, house prices grew at a relatively slower pace during 2012-13 but picked up momentum in 2013-14. Kolkata and Delhi picked up momentum in 2012-13 and then showed some moderation in 2013-14.

Prices in the small size category have gone up at an average annual of 23.7 per cent in the past four years. The average increase has been lower for the medium and large categories at 18.2 and 18.6 per cent, respectively. In 2013-14, the price increase in the small and medium size category moderated to 8.7 and 10.7 per cent, respectively, while that in the large size category remained almost at the average level.

Most realty experts say one should not expect the sector to turn round soon, especially the homes segment. While the new government has raised hopes and improved the sentiment of investors, companies and experts believe a revival is at least a year away. But, they said, commercial properties will be in demand.


Latest Realty News

IIM-B professor on World Economic Forum panel on real estate
Oct 11, 2014
Dr Venkatesh Panchapagesan, Associate Professor, Finance & Control Area, and Coordinator of the IIM Bangalore-Century Real Estate Research Initiative, has been appointed member of the advisory committee of the World Economic Forum on real estate
Builders welcome reduced MVR of land, flats
Oct 11, 2014
The city developers have welcomed the government's move to slash the Minimum Value Register (MVR) of land and flats as they believe the new rates will beckon more buyers due to reduced price of land
Land worth Rs 1 lakh crore encroached in Bangalore
Oct 11, 2014
It may be the biggest daylight land robbery in the state, but nothing much has been done to either book the encroachers
DDA Says 2,000 Conveyance Deeds Issued at Leasehold Conversion Camps
Oct 11, 2014
The Delhi Development Authority (DDA) has so far issued 2,000 conveyance deeds as part of its drive for people to get their properties converted from leasehold to freehold
Encroachments lead to choking of sewer lines in Bhubaneswar
Oct 11, 2014
Unauthorized constructions on conservancy lanes (gaps between two rows of houses) at Unit-IX here have led to choking of sewer lines
Mobility boost to check land sharks
Oct 11, 2014
The state government has decided to provide six vehicles to Bhubaneswar Development Authority (BDA) to check encroachments on vacant government lands
Schemes like smart cities, speed trains in next budget: Arvind Mayaram
Oct 11, 2014
The Budget 2015-16 will include many of the schemes announced by Prime Minister Narendra Modi such as smart cities and high speed trains, Finance Secretary Arvind Mayaram said
Smart City: Narendra Modi's Rs 78,000 crore GIFT project caught in red tape at the Centre
Oct 11, 2014
The first smart city that the Gujarat government had embarked on under then chief minister Modi in 2007 — the Rs 78,000 crore GIFT city is caught in red tape at the Centre
Mumbai’s ‘recession-proof’ south witnesses a downturn
Oct 11, 2014
With Mumbai’s real estate sector activity shifting northwards, a trend that is amply reflected in the surge in prices in that part of India’s business capital, south Mumbai’s billing as the country’s costliest real estate hub seems to be under threat
51st Edition of 'Gruhapravesh'- India's Biggest Property Show in Noida this October
Oct 11, 2014
Gruhapravesh comes back to Noida this year with its 51st edition following the ongoing festive season across the country

Latest Realty News Of State

Realty Talk's