During the quarter July to September 2020, transactions for HPI@Assessment Prices have increased by around 150 % on Q-o-Q basis
The COVID-19 pandemic affected the residential property market during the April-June period last year but sales have improved in affordable homes segment since July onwards, reflecting economic recovery in the real estate sector, according to the Economic Survey.
The National Housing Bank’s (NHB) Housing Price Indices (HPIs) are a broad measure of movement of residential property prices observed within a geographic boundary. The NHB-RESIDEX captures two housing price indices — HPI@ Assessment Prices and HPI@ Market Prices – Under Construction Properties based on the data available for 50 cities with quarterly updation.
The housing price index HPI @ Assessment Prices is based on valuation data collected from primary lending institutions, while HPI @ Market Prices for under construction properties primary and secondary data is collected through market survey.
“The total number of transactions for HPI@Assessment Price reduced by 71 % from March 20 to June 20 on Q-o-Q (Quarter-on-Quarter) basis while on Year-on-Year basis transactions reduced by 67 % from June 2019 to June 2020, indicating that COVID-19 crisis has significantly impacted the residential real estate market. New listings were down significantly and buyers also reduced their home buying activity,” the survey said.
However, during the quarter July to September 2020, transactions for HPI@Assessment Prices have increased by around 150 % on Q-o-Q basis.
“…thus, it is observed that sales have retrieved in affordable segments, reflecting economic recovery in the real estate sector,” the document said.
The Economic Survey highlighted that the access to housing has improved in all states, with some exception.
“The access to housing has improved in all states, except urban areas in few states. The inter-state disparities have also declined as the states having low level in 2012 have gained more. However, the gaps in the levels across states have been large, especially in rural areas,” the document said.
The improvement in access to housing has been disproportionately greater for the lowest income group when compared to the highest income group, thereby enhancing equity in access to housing in 2018 vis-a-vis 2012.
Under the Aatmanirbhar Bharat Abhiyan, the survey said that the government last year announced various measures to give a boost to the real estate sector, such as the extension of registration and completion date of real estate projects under Real Estate (Regulation and Development) Act (RERA). The Ministry of Housing and Urban Affairs advised states/UTs and their regulatory authorities to treat COVID-19 as an event of ‘Force Majeure’ under RERA.
These measures were aimed at de-stressing real estate developers and ensuring completion of projects, the document said.
Source: Thehindu.com/EconomicSurvey