Property Prices Rise in Majority of Indian Cities: NHB Data

According to data by the National Housing Bank (NHB), property prices in 43 out of 50 cities have increased during the fourth quarter of 2022-23.

Although the majority of cities saw an increase, seven cities experienced a decline in property prices. The report stated that home loan rates are still lower than those before the Covid-19 pandemic, leading to overall healthy affordability.

India's eight major residential markets, including Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune, witnessed an appreciation in property prices during the January-March 2023 period. According to the Housing Price Index (HPI) published by NHB, these cities recorded annual increases ranging from 1.7 per cent in Delhi to 11 per cent in Kolkata.

The 50-city HPI, which is based on property valuations collected from banks and housing finance companies (HPI @ Assessment Prices), saw an annual increase of 5.8 per cent during the fourth quarter of FY23, compared to 5.3 per cent in the previous year.

The annual change in HPI @ Assessment Price varied significantly among cities, with Gandhinagar experiencing a 19.6 per cent increase and Ludhiana seeing a decline of 12.9 per cent.

On a quarterly basis (Q-o-Q), the 50-city index expanded by 1.3 per cent in January-March 2023, slightly lower than the 1.5 per cent growth in the previous quarter. However, the index has shown a consistent increasing trend on a quarterly basis since June 2021.

Regarding the supply side, the 50-city HPI, which is based on quoted prices for under-construction and ready-to-move unsold properties (HPI @ Market Price for Under Construction Properties), saw an annual increase of 11.7 per cent in the March quarter, compared to 4.8 per cent in the previous year.

The quoted prices have risen due to partially passing on the increased input costs and increased demand for ready-to-move-in properties, particularly in the affordable segment, the report stated.