The National Housing Bank (NHB) the regulator for housing finance companies said, there has been price correction in the housing market and it is likely to continue in some pockets including the NCR region. Chairman and managing Director Rv verma said after releasing the report on trend and progress of Housing in India for 2012 said, there has been softening of prices in the housing market in some cities including NCR region. This trend may continue for some time, in the national capital region price correction has happened due to over supply. Some more correction may take place in the coming days but still it”s difficult to predict by how much prices could be correct.
Adding further he said there has been 3-4% decline in the housing prices in the 11cities but prices rose marginally or remained stabled in 9 cities. The housing sector would witness a growth of 20% during the current fiscal against 17% in the previous fiscal against 17% in the previous fiscal. Demand drivers include the growing middle class income levels of the people cyclical conditions urbanization.
Talking about the report he said it outlines the overview of the housing sector current policy environment global and domestic economic trends role and performance of NHB, HFCs, banks and emerging trends in the housing finance industry as well as outlook. According to the report though the Indian economy witnessed slow growth in the manufacturing and the services sector the housing sector in specific was not hit by slowdown as the regulators monitored the sector by specifying capital equirments applying adequate risk management the systems and maintaining the assets. He said, steady growth of the housing sector is due to enhanced risk management systems and a constant vigil on the exposure limits capital requirments and assets qualities while benefiting all the stake holders i.e. the lending institutions and the borrowers.