National Association of Realtors (NAR), both a premier organization of Pune and also an apex organization of real estate brokers in the realm of India, is engrossed with a serious job these days. The organization is working with the aim of formulating a live property valuation index, which, as per its conviction, will become the yardstick for real estate deals in India before long. It’s a glorious and timely job. Indeed!
In accordance with NAR President Ravi Varma, brokers’ body has already accomplished good feats owing to its success regarding talks with National Housing Bank (NHB) for development of such an index. It is to be noted that the National Housing Bank (NHB) is the norm-deciding body for all housing finance institutions (HFIs) and NAR is confident that it will soon make the arrangement official and begin developing the index for which data collection is already in progress.
It has also been found under the mandate from NHB, the brokers body will build up Residex’, an index akin to the stock exchange index that will reflect the valuations of home properties in different locations across the country. Speaking on this, Varma said Residex will be a magazine indicator of property prices that will arrive handy for HFIs to appraise the correct value of a property they are considering to finance. And the index will also act as a guide for property buyers. However, at the outset, the exercise will be of an experimental nature and will finally become a benchmark for property valuations for the HFIs.
But there is nothing new in the entire development since the same has become almost a set practice in full-fledged real estate markets, like the United States, and with globalization of India’s realty sector the index has a significance in the country since the global buyers are asking for information based on statistics and future expectations about returns.
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