Residential property prices in 50 cities recorded an increase of 7.1 per cent year-on-year during the quarter ended December 31, 2022 as compared with 4.5 per cent a year ago, according to Residex, a housing price index (HPI) released by the National Housing Bank (NHB).
NHB Residex publishes three housing price indices: ‘HPI at assessment prices’, ‘HPI at registered prices’ and ‘HPI at market price for under-construction properties’.
‘HPI at assessment prices’ tracks the movement in prices of residential properties in 50 cities on quarterly basis with FY 2017-18 as the base year and is based on valuation prices of properties collected from primary lending institutions.
Out of the 50 cities, 44 cities registered increase in the index whereas six cities registered decline on an annual basis. HPI of Gandhinagar witnessed an increase of 21.4 per cent while Ludhiana recorded a decline of 11.6 per cent.
All the eight major metros of the country viz., Ahmedabad (14.4%), Bengaluru (8.0%), Chennai (8.7%), Delhi (1.8%), Hyderabad (10.2%), Kolkata (7.4%), Mumbai (4.4%) & Pune (7.2%) recorded increase in the index on an annual basis.
On a quarter-on-quarter basis, the 50-city index registered an expansion of 1.5% in October-December 2022 as against 1.2% in the previous quarter. The index is showing an increasing trend on quarter-on-quarter basis since June-21.
The index recorded increase in 40 cities out of top 50 cities with Kochi recording the highest sequential improvement of 6.4%, while Ludhiana, Delhi, Dehradun, Nagpur, Navi Mumbai, Raipur, Bhiwadi, Bidhan Nagar, Howrah, & New Town Kolkata recorded sequential decline in the ‘HPI at assessment price’ during the quarter.
The ‘HPI at market price for under-construction properties’ computed using the quoted prices for under-construction and ready to move unsold properties for 50 cities also recorded an annual increase of 10.8 per cent in October-December 2022 quarter as against 2.9% a year ago. Lucknow witnessed highest increase of 41.2 per cent while Rajkot saw a 3.4 per cent decline.
On a quarter-on-quarter basis, the 50 city index witnessed an increase of 3.1% during the quarter compared to 3.7% in previous quarter. The rising cost of construction is showing an impact on the asking prices of the property.
According to NHB Residex, there has been a sustained increase in the indices post covid-19. The improvement has been more prominent in the tier-II and tier-III cities.
