NEW DELHI: Housing prices rose in 42 cities in the first quarter of 2022-23, remained stagnant in three cities and fell in five cities, according to the price index Residex released by the National Housing Bank (NHB).
All the eight major metros in the index recorded increase in housing prices on an annual basis-- Ahmedabad (13.5%), Bengaluru (3.4%), Chennai (12.5%), Delhi (7.5%), Hyderabad (11.5%), Kolkata (6.1%), Mumbai (2.9%) and Pune (3.6%). The 50-city HPI ( housing price index), based on valuation of properties collected from primary lending institutions (HPI @ Assessment Prices), stood at 122 in June, up from 120 in March and 114 in June 2021.
The annual change in HPI at assessment price varied widely across the cities – ranging from an increase of 16.1% in Coimbatore to a decline of 5.1% in Navi Mumbai. HPI tracks the movement in prices of residential properties in select 50 cities on a quarterly basis with FY 2017-18 as the base year.
The 50-city HPI at market price for under-construction properties, computed using quoted prices for under-construction and ready-to-move unsold properties, recorded an annual increase of 5.7% in the June ending quarter to 112, indicating continued demand and rising cost of construction.
Dhaval Ajmera, director of Ajmera Realty Infra, said the RBI recently raised rates by 140 bps, which raised the cost of raw materials. Rise in property prices has also been fuelled by inflationary pressures and higher EMIs for home loans, he said. He added, “The recent decline in commodity prices will assist to balance the price increase.
As inflationary pressures ease, the real estate market is anticipated to restore its momentum. The price volatility of raw materials and geopolitical cues should return to normal in the following quarters. Also, the workforce returning back to the metro cities followed by increased buying during the festive season will boost the housing demand.”