The city has witnessed the maximum increase in House Price Index (HPI), according to data released by the Reserve Bank of India (RBI).
Against the all-India average increase of 5.2 per cent, a drastic dip from 17.2 per cent last year, the increase in HPI in Chennai was 12.1 per cent, figures published by the RBI on its website reveal.
While the development is welcomed by players in the industry, some others wonder whether this will augur well for the realty sector at a time when the huge volume of unsold homes continues to be a cause for concern.
The increase in HPI in Chennai, according to the RBI figures, is even higher than that in Bengaluru.
“I strongly believe that these are the triggers for an improvement in terms of pricing and sales. The city will witness a good movement of residential units in the current financial year,” said T. Chitty Babu, chairman and chief executive officer, Akshaya Homes.
Analysts in the sector said that although the volume of sales had been slow, the pricing had nevertheless been intact and there had not been a drop in costs.
In Chennai, an end user-driven market, the trend was likely to continue, an independent analyst said.
EOM
FOR REFERENCE:http://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics
https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=37423
