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Movements in real estate prices, especially housing macroeconomics, as well as for families is important. Most Indians have a house, plus the considerable effort and possibly some of the victims had been purchased, with the component. Wealth effect and homes, in addition to the obvious implications for the macro level, housing prices, output, inflation and financial health, to develop the appropriate response of monetary policy and financial stability can be useful in establishing the framework is a good sign. The previous (2007) in view of the rancor in the real estate prices have acquired greater importance. Perception of the housing market in recent years and the recent fall in the property market, a number of questions in regard to overheating. What are the determinants of house prices? We can assess a property bubble? We have the role of increases in property prices to measure liquidity?

Most developed and some developing countries is the high property prices. The index is versatile and planners, developers, construction industry, financial institutions, and can be used by individual home buyers. Measure of house prices over time is not at all simple and easy. The complex nature of the housing market for the construction of a representative house price index is a major challenge. In general housing market, the resale of negotiated rule, and lack of liquidity in the actual purchase price is often not reported. Houses are rarely sold in composition and quality of housing transactions in the Forex market over time. Location, footprint, quality, etc., manufacturing - like - a good contrasting qualitative and quantitative characteristics in terms of several factors in determining house prices is the result of a complex interaction.

There are advantages and disadvantages of their own homes with the price index, there are many ways for each building. Some of these methods is a simple summary measures (means) in a given period are limited to the median home value of transactions. The advantages of these methods to calculate and interpret the results in terms of their relative simplicity, is both. However, such simple measures suffer from problems of structure and quality.

More sophisticated methods (eg hedonic and repeat sales regression method) Recent advances in value have led statisticians are appropriate to the composition and quality changes to address growing. However, these methods are data intensive.felt the need to provide. Consequently, the National Housing Bank (NHB), the Union, the national index on the feasibility of developing a pilot study is investigating at the request of the Ministry of Finance. Pilot study of five cities, the involved. Bangalore, Bhopal, Delhi, Kolkata and Mumbai.management. NHB in July 2007 the first official index of house prices in India, as a index tracking the prices of residential properties launched in India. NHB index was RESIDEX. NHB RESIDEX undoubtedly launched in India in a developing country efforts to the residential real estate prices for such a wide scale to capture the movements.