Property Prices Witness Mixed Growth Across Indian Cities in Q4 2022-23

According to the National Housing Bank (NHB), property prices increased in 43 out of 50 cities during the fourth quarter of the fiscal year 2022-23, as reported in the 50-city Housing Price Index (HPI).

Kolkata emerged as the front-runner among major metros with an 11 percent surge, followed by Ahmedabad at 10.8 percent, Bengaluru at 9.4 percent, Pune at 8.2 percent, and Hyderabad at 7.9 percent. Chennai, Mumbai, and Delhi experienced more modest increases of 6.8, 3.1, and 1.7 percent, respectively.

However, the report also indicated that seven cities saw a decline in property prices. Delhi, Navi Mumbai, Kochi, Coimbatore, Raipur, Faridabad, Bidhan Nagar, and New Town, Kolkata, witnessed a sequential decrease in prices during the quarter. Raipur had the highest decline at 6.7 percent, primarily due to projects initiated by the Raipur Municipal Corporation for the Economically Weaker Sections (EWS) and Low-Income Groups (LIG).

The HPI, which gathers property price data from banks and housing finance companies, revealed an annual increase of 5.8 percent during the fourth quarter of fiscal year 2023, compared to 5.3 percent the previous year.

The annual price changes varied significantly across cities, ranging from a substantial 19.6 percent increase in Gandhinagar to a notable slump of 12.9 percent in Ludhiana.

In terms of sequential trends, the 50-city index grew by 1.3 percent in the January-March 2023 period, slightly lower than the 1.5 percent growth in the previous quarter.

Both under-construction and unsold ready-to-move-in properties experienced an annual price increase of 11.7 percent in the March quarter, compared to 4.8 percent in the corresponding period the previous year.

The NHB highlighted that home loan rates remain lower than pre-pandemic levels, contributing to favorable affordability in the housing market.

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