GS Mains Model Question & Answer: What is NHB Residex? Discuss its background and its implication. Comment

Q. What is NHB Residex? Discuss its background and its implication. Comment

Model Answer:

What is NHB Residex? Discuss its background and its implication.

RESIDEX is a housing price index (HPI) formulated and developed by the National Housing Bank, a wholly owned subsidiary of the RBI. RESIDEX currently measures price change in residential housing across 50 cities in India and is slated to capture data from over 100 cities, including all state capitals and ‘smart cities’. RESIDEX will not only help guide decisions within the sectors of real estate and real-estate finance, but will also enable more accurate tracking of national and regional economic performance.

Background:

Designed by technical advisory committee comprising Govt representatives , lenders and propert market players.

Originally flagged off in july 2007 , later on discontinued in 2015 and was refurbished and re introduced in july 2017.

Enhanced city coverage from 26 to 50 and new base year 2012-13 and new data source.

It currently offers two sets of quarterly housing prices indices across the cities it tracks.

Implication:

Real time assessment and pricing of housing sector.

A kind of uniformity in the procedure to track the procedure in all 50 cities which will give an insights to investors and buyers.

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