Housing prices have increased in 24 major cities of the country between 2007 and 2013, with Chennai reporting more than three fold appreciation in the rates, according to Economic Survey.
However, housing rates have fallen only in two cities -- Kochi and Hyderabad during 2007-2013 period, the survey said, quoting residential index (RESIDEX) prepared by the National Housing Bank for 26 major cities.
"House 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," the survey noted.
As compared to 2007 (base year), the survey said prices of residential properties during the period 2007-2013 have witnessed increases in 24 cities with the maximum increase in Chennai (230 per cent), followed by Pune (135 per cent), Bhopal (123 per cent), and Mumbai (122 per cent).
Only two cities witnessed fall in housing prices with the maximum decrease observed in Kochi (-15 per cent) followed by Hyderabad (-7 per cent).
Real Estate and ownership of dwellings with a share of 5.9 per cent in India's GDP, grew by 5.6 per cent in 2012-13 whereas real estate in particular, grew by 26.1 per cent, the survey observed.
Staing that housing activities have both forward and backward linkages survey elaborated that it not only contribute to capital formation, generation of employment, and income opportunities but also to economic growth.
"Estimates show that every rupee invested in housing and construction adds 78 paise to the GDP," the survey observed.
