National Housing Bank released its ‘NHB RESIDEX’ for quarter ended June 2022 which showed that the three prominent cities of Telangana and Andhra Pradesh - Hyderabad - 11.5%, Vizag - 6.7%, and Vijayawada - 3.0% - recorded significant improvement in the index on an annual basis.
Housing Price Index (HPI) tracks the movement in prices of residential properties in select 50 cities on quarterly basis with FY 2017-18 as the base year. On a sequential (quarter-of-quarter) basis, the 50-city index registered an expansion of 1.7% in April-June 2022 as against 2.6% in the previous quarter.
The index is showing an increasing trend since June-21 with Hyderabad - 1.9%, Vijayawada - 2.0%, and Vizag - 0.8% - recording moderate improvement in index during quarter April - June 2022 on a sequential basis, according to a press release on Thursday.
The 50 city HPI., based on valuation prices of properties collected from primary lending institutions, recorded an annual increase of 7% as compared with 1.8% a year ago during the same period. The annual change in HPI widely across the cities – ranged from an increase of 16.1% - Coimbatore, to a decline of 5.1% - Navi Mumbai.
The annual variation in HPI@ market price ranged from an increase of 28.6% - Bhubaneshwar, to a contraction of 13.2% - Indore. Hyderabad - 5.7%, Vijayawada - 4.3% and Vizag - 9.0% - recorded an annual increase in the index during this quarter
The 50 city Index witnessed an increase of 1.8% during the quarter compared to 1.9% in previous quarter. The uptick in the asking prices for properties is indicative of continued demand and rising cost of construction, added the release.
While cities like Hyderabad - 0.7% and Vijayawada - 2.1% - witnessed moderate improvement in the index during April - June 2022, Vizag recorded significant improvement in the asking prices resulting in an improvement of 9.0% in the index during April – June 2022 on a sequential basis.
