The National Housing Bank (NHB) is scouting for an agency to collect data of unsold properties -- both underconstruction and ready-to-move-in ones -- across 50 cities from builders and developers for the computation of its key price index. NHB RESIDEX, India's first official housing price index (HPI), was launched in July 2007 to track the movement in prices of residential properties in select cities on a quarterly basis.
The housing finance regulator publishes two HPIs -- HPI@ Assessment Prices and HPI@ Market Prices for Under Construction Properties for 50 cities. NHB has floated a request for proposal (RFP) for the engagement of an external agency to source data on unsold properties for computation of HPI@ Market Price for Under Construction Properties' for NHB RESIDEX.
"For underconstruction, unsold properties for 50 cities, the data should be collected from builders/developers," it said. Amit Goyal, chief executive officer of India Sotheby's International Realty said that as of now, information and data related to real estate especially price trend and supply are available in a piecemeal fashion.
Though NHB and the Reserve Bank of India (RBI) have real estate indices, they are not updated regularly and thus do not reflect the most recent trends, he said. He added that whenever they update the index, time-lag still remains.
"It is important for indices to provide more recent data and do so for micro-markets as well. Such indexes can help homebuyers in decision making as well as other stakeholders of the real estate market," Goyal said. As per Anarock Property Consultants, current unsold inventory across the seven main cities stood at 6.5 lakh units during the July-September quarter. Last year, in the same period, it was 6.72 lakh units.
According to Real Insight (Residential) -- July-September 2021 -- by PropTiger, builders in India had an unsold stock consisting of 7,20,519 housing units across the top-8 residential markets as of September 30, 2021. The RFP further said the data collected should include approved constructions (RERA registered or otherwise) for residential apartments.
Besides, the selected agency will have to provide a detailed report on the total number of unsold inventories, sold units and additions to stock on a quarterly basis for the 50 cities individually as well as pan India on an aggregate level. Detail report of stalled projects along with the reason for being stalled and the number of sold and unsold units in the stalled projects on a quarterly basis will also have to be provided by the select entity.