Property Prices Increased 4.7% In India’s 10 Cities In Q3: RBI

Except Kanpur, rates of property in India’s 10 major cities increased in the third quarter of the financial year 2018-19 on an annual basis, the Reserve Bank of India’s (RBI) House Price Index (HPI) shows.  With an 28.8 per cent increase, Kerala's financial capital Kochi saw the highest upwards movement in rates during the same period, the index shows.  

The all-India HPI shows an annual increase of 4.7 per cent. Growth rate of the HPI is, however, lower than the 5.7 per cent increase in the previous quarter and 7.2 per cent hike a year ago.

The annual growth and contraction in HPI ranged from 28.8 per cent in Kochi to -6.5 per cent in Kanpur, indicating large divergences in city-wise housing price movements, the RBI said.

A quarterly analysis also shows rates increased the most in Kochi at 8.5 per cent while they contracted the most in Rajasthan capital Jaipur, with a 3.1 per cent fall.  The all-India HPI shows a sequential increase of only one per cent.

Cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai. The data are based on transactions numbers received from housing registration authorities in the cities

If we compared the price movement in the past five years Uttar Pradesh capital Lucknow has seen the sharpest movement where property prices have increased over 13 per cent. Also, rates have increased across cities during half a decade, the HPI shows.  Others cities where property prices increased in double digits during this period are Kanpur (11.3 per cent) and national capital Delhi (10.4 per cent) . At 3.7 per cent, Jaipur recorded the lowest increase in rate in the past five years.

Data available with PropTiger.com also show price growth in India’s Tier-II cities have higher when compared to the mega cities owing to the affordability and growth potential they offer to buyers and investors.