As many as 43 cities out of 50 registered an increase in property prices during fourth quarter of 2022-23, according to the National Housing Bank (NHB) data released on Thursday.
However, 7 cities registered a decline in the property prices. The home loan rates are still lower than that of pre-COVID period leading to a healthy affordability overall, it said.
India’s eight key primary residential markets witnessed appreciating property prices during the January-March 2023 period.
Ahmedabad with a rise of 10.8%, Bengaluru (9.4%), Chennai (6.8%), Delhi (1.7%), Hyderabad (7.9%), Kolkata (11%), Mumbai (3.1%) and Pune (8.2%) recorded an increase in the index on an annual basis as per the Housing Price Index (HPI) published by NHB.
The 50 city HPI based on valuation of properties collected from banks and housing finance companies (HPI @ Assessment Prices) recorded an annual increase of 5.8% during the fourth quarter of FY23 as compared with 5.3% a year ago, it said.
The annual change in HPI @ Assessment Price varied widely across the cities – ranging from an increase of 19.6% (Gandhinagar) to a decline of 12.9% (Ludhiana).
On a sequential (Q-o-Q) basis, it said, the 50-city index registered an expansion of 1.3% in January-March 2023 as against 1.5% in the previous quarter. The index is showing an increasing trend on Q-o-Q basis since June 2021.
On the supply side, it said, 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 11.7% in March quarter 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, it said.
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