Residential Property Price Index moved up to 172 in Q3:2014-15 from 107 in Q1:2010-11
Mumbai: The Reserve Bank of India has placed on its website, an article titled ‘Recent Trends in Residential Property Prices in India: An exploration using housing loan data’ based on the results of its ‘Residential Asset Price Monitoring Survey’.
The salient findings of the survey covering housing loan transactions during Q1: 2009-10 to Q3: 2014-15 are:
- Residential Property Price Index moved up to 172 in Q3:2014-15 from 107 in Q1:2010-11.
- House price inflation, as measured by annual growth in RPPI, witnessed its peak during 2012-13 and has declined in the recent period.
- The annual growth in RPPI and CPI-Housing Rent Index has been fairly similar in the last seven quarters.
- Median Loan-to-Value ratio decreased over the last 5 year period; the proportion of housing loan transactions with higher Loan-to-Value ratio also reduced over the quarters.
The Reserve Bank had initiated an information system on residential property prices through this survey, following the recommendations of the ‘Expert Group on Asset Price Monitoring System, 2010’. The survey covers transaction level data on housing loans disbursed across select 13 cities, from select 35 scheduled commercial banks/housing finance companies. The property price data used in this analysis is the valuation price of the property as appraised by the concerned bank/ housing finance company (HFC). Based on the data compiled on a quarterly basis, a Residential Property Price Index (RPPI) is constructed for each city and at All-India level.