24 Cities Witnessed Boom in Housing Prices From 2007-2013
According to the Economic Survey 2013-14, housing prices have increased in 24 major cities across the country between 2007 and 2013. The city of Chennai alone reported more than a threefold gain in the rates in those 6 years. As compared to the base year (2007), during the time period 2007-2013, residential property prices saw immense growth in 24 cities with the maximum boom in Chennai (230%), Pune (135%), Bhopal (123%), and Mumbai (122%). Kochi and Hyderabad were the only two cities that saw a drastic drop in housing prices, -15% and -7% respectively.
“House prices have skyrocketed over the years in many cities and towns as per the National Housing Bank RESIDEX index of residential property prices in cities across India,” the survey noted. The survey also observed that real estate and ownership of dwellings with a 5.9% share in the nation’s GDP (Gross Domestic Product) grew by 5.6% in 2012-2013, whereas real estate as by itself grew by 26.1%.
Estimates show that every rupee invested in construction and housing adds 78 paise to GDP of India.
The survey also elaborated on how housing activities not only contribute to capital formation, generation of employment and income opportunities, but also to overall economic growth.
Source: ZeeBiz
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