House prices buck economic slowdown

CHENNAI: House prices have managed to beat the economic slowdown with rates displaying a rising trend in the April-June quarter. A survey by the National Housing Bank showed Pune posted the highest gains in the quarter, followed by Patna and Bangalore.

House prices across 17 out of 20 cities registered a gain between 0.7% to 10.5% between January and March 2012 and April and June 2012. Only in three cities –– Jaipur, Hyderabad and Indore — prices fell, NHB’s Residex said.

In the commercial capital Mumbai, the index rose 3.68% — prices in Lower Parel rose 19% and were up 26% on Pokhran Road. In Delhi and NCR, housing prices in Vasant Vihar and Friends Colony rose 24% while in Vasant Kunj, the increase was 6%. The Residex for Delhi was up 2.4% between Jan and March and April and June.

Chennai’s index rose 1.6% but localities like Ashok Nagar, T Nagar and Saligramam witnessed a 14% rise while Kodambakkam, Guindy and Chromepet areas registered a 11% increase.

“The developers are pushing up prices in the residential segment, but absorption levels are very poor. While it is interesting to see a rise in prices, it is important to see transactions at these elevated levels. There are supply side issues in markets like Mumbai while absorption levels in Chennai and Bangalore continue to remain active,” Ashish Bhasin, general manager, investment services at Colliers International, a global real estate services organization, said.

The NHB Residex helps consumers, property buyers and borrowers in their decision-making by enabling comparisons over time and across cities and localities and the emerging trends in the property market.

The NHB Residex has been prepared for 20 cities and takes into account the price trends for residential properties in different locations and zones in each city, according to the classification devised for evaluation.