NHB undertook a pilot study to examine the feasibility of preparing an index at the national levelto track the movements in prices of residential properties.Based on this pilot study NHB residex has been prepared under the guidance of the technical advisory group with Advisor Ministry of Finance as chairman and comprising experts as members from RBI,NSSO,CSO.NHB,and other players.NHB Residex was launched by Honourable Finance Minister Sri P.Chidambaram on 10th July 2007.NHB is likely to extend the coverage of the index to all major cities in a phased manner.Finally a composite index for the entire country will be launched.The Residex will be operated by NHB on half yearly basis.To begin with it is proposed to develop the index only for residential properties.At a later stage index could be extended to cover commercial properties as well.Under Residex the actual transaction prices will be reckoned..The prices inclusive of land costs,but exclusive of registration fee,stamp duty brokerage etc would be considered.
The launching of Residex is a welcome development and the same will help all those who are interested-the banks and HFCs,property buyers,and custmers of banks and HFCs.
