India’s eight key primary residential markets witnessed appreciating property prices during the January-March 2023 period, National Housing Bank’s housing price index showed.
These are Ahmedabad (10.8 per cent), Bengaluru (9.4 per cent), Chennai (6.8 per cent), Delhi (1.7 per cent), Hyderabad (7.9 per cent), Kolkata (11 per cent), Mumbai (3.1 per cent) and Pune (8.2 per cent) and the eight cities recorded increase in the housing price index on an annual basis, the NHB index showed.
The 50 city HPI based on valuation prices of properties collected from Banks and Housing finance companies (HPI @ Assessment Prices) recorded an annual increase (Y-o-Y) of 5.8 per cent during the fourth quarter of fiscal 2023 as compared with 5.3 per cent a year ago, a statement issued by NHB said.
The annual change in HPI @ Assessment Price varied widely across the cities – ranging from an increase of 19.6 per cent (Gandhinagar) to a decline of 12.9 per cent (Ludhiana).
Of the 50 cities covered, 43 registered an increase in property prices, whereas seven cities registered a decline in property prices.
The home loan rates are still lower than the pre-pandemic rates leading to healthy affordability overall.
On a sequential (Q-o-Q) basis, the 50-city index registered an expansion of 1.3 per cent in January-March 2023 as against 1.5% in the previous quarter. The index is showing an increasing trend on a Q-o-Q basis since June-21.
The index recorded an increase in 42 cities out of 50 cities, with Gurugram recording the highest sequential increase of 5.3%, while Delhi, Navi Mumbai, Kochi, Coimbatore, Raipur, Faridabad, Bidhan Nagar, & New Town Kolkata recorded a sequential decline in the HPI @ Assessment Price during the quarter.
Raipur recorded a maximum decline of 6.7% due to projects launched by Raipur Municipal Corporation for the EWS and LIG Category).
On the supply side, the 50 city HPI based on the quoted prices for under-construction and ready-to-move unsold properties (HPI @ Market Price for Under Construction Properties), also recorded an annual increase (Y-o-Y) of 11.7% in QE March 2023 as against 4.8% a year ago.
The quoted prices witnessed an increase driven by the partial pass-on of the increased input cost coupled with increased demand in ready-to-move-in properties, more so in the affordable segment, the NHB statement added.
The annual variation in HPI @ Market Price ranged from an increase of 47.6 per cent (Lucknow) to a contraction of 4.1 per cent (Rajkot & Panvel).
On a sequential (Q-o-Q) basis, the 50 city Index witnessed an increase of 2.6 per cent during the quarter compared to 3.1 per cent in previous quarter.