Rise and Fall in Indian Property prices

According to the latest data released by the National Housing Bank (NHB), during the first quarter of 2011, in all over India, the prices for property have been dropped from 20.63% to 17.6%.

During the same period, five more cities have shown a marginal change inproperty prices. Among these, three have shown an increase in property rates; this has increased to 5% from 2.6%.

NHB’s residential housing price index data, which is also known as Residex for the first quarterof the calendar is always considered as a comparative study with the previous year’s quarter.According to this NHB Residex, upon analyzing year-on-year data, it has been found that in last one year, the property prices in all 15 cities that counts under NHB Residex have increased to a great extent.

According to the reports of NHB Residex, when property prices of July to September 2010 were compared to those prevailing during October to December 2010, then out of 15 cities 13 had increased property prices. In the remaining two cities, prices were either almost same else they were dropped marginally.

Property market has always been uncertain and therefore when NHB chairman was asked about the possible range of property price correction in the coming months, then he refused to provide a figure and said, “We can’t hazard any guess on property price correction as it may impact the market. There are blips in the property market”.