India’s eight key primary residential markets witnessed appreciating property prices during the April-June 2023 period on a year-on-year basis, the latest NHB RESIDEX showed.
For the quarter under review, Ahmedabad (9.1 per cent) saw the largest increase while Delhi recorded the least increase at 0.8 per cent. The other major cities that witnessed appreciating property prices are Bengaluru (8.9 per cent), Chennai (1.1 per cent), Hyderabad (6.9 per cent), Kolkata (7.8 per cent), Mumbai (2.9 per cent) and Pune (6.1 per cent).
The 50-city Housing Price Index (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 4.8 per cent during the first quarter of the fiscal 2024 compared with 7.0 per cent a year ago.
The annual change in HPI @ Assessment Price varied widely across the cities – ranging from an increase of 20.1 per cent (Gurugram) to a decline of 19.4 per cent (Ludhiana).
Out of the 50 cities covered, 43 registered an increase in property prices whereas seven cities registered a decline in the property prices.
The home loan rates are still lower than the pre-pandemic rates leading to a healthy affordability overall.
On a sequential (q-o-q) basis, the 50-city index registered an expansion of 0.7 per cent in April-June 2023 against 1.3 per cent in the previous quarter. The index is showing an increasing trend on q-o-q basis since June-21.
The index recorded increase in 36 cities out of 50 cities with Chandigarh recording the highest sequential increase of 4.9 per cent, while Navi Mumbai, Ludhiana, Howrah and Bhiwadi recorded sequential decline with more than 2 per cent in the HPI @ Assessment Price during the quarter (Navi Mumbai recording the maximum decline of 5.9 per cent).
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 of 12.2 per cent in QE June 2023 as against 5.7 per cent a year ago.
The annual variation in HPI @ Market Price ranged from an increase of 33.7 per cent (New Town Kolkata) to a contraction of 2.2 per cent (Rajkot).
On a sequential basis, the 50-city Index witnessed an increase of 2.3 per cent during the quarter compared to 2.6 per cent in previous quarter.
NHB Publishes two indices viz. HPI @ Assessment Price (based on valuation prices provided by PLIs) and HPI @ Market Price for under construction properties (based on asking price of unsold & under construction properties by builders and developers) on a quarterly basis.