Realty Sector will contribute 10% of the GDP by 2030, according to Union Housing and Urban Affairs Secretary, Durga Shanker Mishra.
Mishra was speaking about the launch of the housing price index (HPI) in collaboration with industry body NAREDCO, which will allow homebuyers, investors, real estate developers, and policymakers to track high-frequency price movement in India’s key residential markets.
Indian School of Business and Housing.com released a new housing index that may provide useful information. The Realty Sector has suffered as a result of the COVID-led slowdown and general uncertainty. “This makes it essential to track growth using credible sources so authorities can respond more quickly.” Mishra added.
According to the index, the cumulative price growth in the country was 13% from 2017 to 2020. While growth has been slow in comparison to the previous decade, it has slowed even more since mid-2019. Prices have increased only slightly since the COVID-19-induced lockdown.
Quantitatively, prices increased by only 1% in 2020, and the growth rate has yet to return to pre-pandemic levels. Mishra said the sector has already begun to show signs of recovery in the first quarter of 2021.
Various Indian markets will be track by HPI, according to housing.com and Indian School of Business (ISB).
The HPI, created in collaboration with the Indian School of Business’s (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, according to the Gurugram-based digital real estate company.
Indian cities lack high-frequency data
Because Indian cities lack high-frequency data, buyers and policymakers have to rely on anecdotes and guesswork. The entire purpose of launching the Housing HPI is to address this issue. Our HPI will also be extremely useful for developers, as well as for buyers, investors, and policymakers. Having access to information like this has become more important than ever for real estate builders, with the demand landscape rapidly evolving due to the emergence of the “work-from-home” concept in the aftermath of the COVID-19 pandemic,” said Dhruv Agarwala, Group CEO, housing.com.
The index may provide insights about how to time the sale or purchase of a house based on price movement. Policymakers and financial analysts can also use it as a reliable estimate to track sector trends.
Based on a quarterly survey of cities including Ahmedabad, Bengaluru, Chennai, Delhi NCR (Faridabad, Ghaziabad, Gurugram, Greater Noida, and Noida), Hyderabad, Kolkata, Mumbai, and Pune from 2017 to the present, The HPI, which is own by Elara Technologies, employs granular prices from localities and their corresponding weights based on the transaction value share of that locality in India, and bases its findings on 1, 2, and 3-BHK apartments.
Prices per square foot, quantities, and total values for various sub-regions within each city appear. It also includes information such as the number of bedrooms, the status of construction, and the number of inventory units.
“It has been a long haul for the Indian Realty Sector to undergo a system reboot as a result of various structural policies that have recently been implement.” During the current pandemic, the sector saw an increase in the use and reliance on technology. The digital transition has been quite phenomenal,” said Niranjan Hiranandani, National President – NAREDCO; Founder & MD – Hiranandani Group.