Housing prices in Chennai grew three times between 2007 and 2013
The housing prices have fluctuated a lot in the country in the last decade. The Economic Survey which quoted the residential index (RESIDEX) prepared by the National Housing Bank for 26 major cities have come up with some interesting data.
Housing prices have increased in 24 major cities of the country between 2007 and 2013. However, housing rates have fallen only in two cities, Kochi and Hyderabad during the 2007-2013 period. Chennai reported more than threefold appreciation in the rates and the credit goes mainly to the IT ITES boom in the city.
The survey also mentioned that the housing prices have skyrocketed over the years in many cities and towns as per the National Housing Bank’s RESIDEX index of residential prices in India across cities. This was pertaining to the globalisation and entry of major MNCs in India. That increased jobs and the youth started migrating to metros after bagging plum jobs. Double income households and fewer responsibilities created a huge corpus of disposable income and the youth bee lined to the developers’ offices to invest in real estate.
Getting tax saving options for home loans fuelled the demand for home buying and the developers decided to quote rampant prices citing amenities and other luxury items.
As compared to 2007 (base year), the prices of residential properties during the period 2007-2013 have witnessed increases and Chennai witnessed the highest increase of 230% followed by Pune at 135%, Bhopal at 123 % and Mumbai at 122%. Only two cities witnessed fall in housing prices with the maximum decrease observed in Kochi (-15 %) followed by Hyderabad (-7 %).
Source- Financial Chronicle
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