Launch of "Housing Pricing Index (HPI)"
Housing.com along with the Indian School of Business (ISB) announced the launch of its Housing Pricing Index (HPI), an indicator of economic activity in real-estate. 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. By offering useful insights into price movement, the index could help a potential homebuyer 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 (Faridabad, Ghaziabad, Gurugram, Greater Noida and Noida), 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. Data collected for this purpose include information on price per square foot, quantity, and the total value of transactions in the previous three months for various sub-localities within each city. It also includes other details such as the number of bedrooms, construction status, and the number of inventory units. Durga Shanker Mishra, Secretary, Ministry of Housing and Urban Affairs, Govt. of India, said: “The Housing Price Index has the potential to emerge as a good indicator of the country’s real-estate market health. 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. I commend and encourage the two institutions for collaborating towards this initiative to monitor the movement of housing prices and quantities in a fast-growing economy like ours.” Dr Niranajan Hiranandani, National President - NAREDCO opined that, “Introducing the data index for Real Estate, one of the vital economic growth anchors, is a leap forward. The prime objective is to bring transparency and narrow down the trust deficit between all the concerned industry stakeholders. It will address the challenge of the paucity of well-defined data and foster companies with the right business intelligence, market insights, trends, and sentiments to sign off well-informed decisions. This new-age methodology will promote Indian Real Estate at par with global best practices."
Tags : News/Views Real Estate Housing.com Launch "Housing Pricing Index (HPI)" Indian School of Business (ISB)