Come January, you may be able to get a better idea of ‘home rental
’ rate changes across the country. Buoyed by success of its Residex, housing
finance regulator National Housing
Bank (NHB) now plans to roll out a ‘Housing Rental
Index’ to help home
owners and tenants. This will be part of the three indices that NHB will roll out in the next few years, Sriram Kalyanaraman, Managing Director & Chief Executive Officer, NHB, told media in an interview.
Kalyanaraman said the ‘Housing Rental
Index’ would be the first off the block and followed by indices on “land
prices” and “building
materials”. “Work has started on all three indices,” he said. These indices will be in addition to the existing NHB Residex, which was the country’s first official residential property
price index. Currently, the NHB Residex gives relative movement of residential property
prices in different localities in 26 cities.
The Residex initiative was aimed at providing a better understanding of the trends in the residential property market and its various nuances. The idea was to bring greater transparency in the property market. Kalyanaraman said NHB Residex — which now covers 26 cities — would cover 50 cities by 2017 and 61 by 2018. For its indices, NHB is now moving to “market collection” of data by partnering with specialised private institutions, in addition to the data supplied by banks/ institutions and CERSAI, he said.
NHB — which is probably the only ‘nil’ net NPA financial institution-in India – reported a net profit of ₹792 crore for the financial year ended June 30, 2016. This represented a 6 per cent increase over the net profit of ₹747 crore in the previous financial year. Total income during the period stood at ₹4,213 crore (₹3,866 crore).
Credits The Hindu Business Line