Housing prices rise in 41 cities in FY22, says National Housing Bank

On a sequential basis, the 50-city index registered an expansion of 2.6 per cent in January-March 2022 against 1.7 per cent in the previous quarter.

Housing prices rise in 41 cities in FY22, says National Housing Bank
The variation in market price ranged from an increase of 23.9 per cent (Bhubaneshwar) to a contraction of 10.8 per cent (Indore). (File/Reuters)

Housing prices increased in 41 cities during 2021-22, while the rates of residential units fell in five cities and remained stable in four cities, according to price index RESIDEX released by National Housing Bank (NHB).

All of the eight major metros of the country viz., Ahmedabad (13.8 per cent), Bengaluru (2.5 per cent), Chennai (7.7 per cent), Delhi (3.2 per cent), Hyderabad (11 per cent), Kolkata (2.6 per cent), Mumbai (1.9 per cent) and Pune (0.9 per cent) recorded increase in the index on an annual basis, NHB RESIDEX said.

The annual change varied widely across the cities, ranging from an increase of 13.8 per cent (Ahmedabad and Bhubaneshwar) to a decline of 5.9 per cent (Navi Mumbai), it said.

On a sequential (quarter-on-quarter) basis, the 50-city index registered an expansion of 2.6 per cent in January-March 2022 as against 1.7 per cent in the previous quarter.

The index shows an increasing trend on Quarter-on-Quarter (Q-o-Q) basis since June 2021, suggesting revival of housing market post Covid-induced lockdown, it said.

The NHB, which launched housing price index ‘NHB RESIDEX’ in 2007 to track the movement in housing prices on quarterly basis, has revamped the system by changing the base year to 2017-18.

The market price for under-construction properties, computed using the quoted prices for under-construction and ready-to-move unsold properties, also recorded an annual increase of 4.8 per cent in quarter ended March 2022 as against 1 per cent a year ago.

The variation in market price ranged from an increase of 23.9 per cent (Bhubaneshwar) to a contraction of 10.8 per cent (Indore).

On a sequential basis, the 50-city index witnessed a change of 1.9 per cent during the January-March 2022 quarter compared to 0.9 per cent in the previous quarter, suggesting an uptick in the asking prices for properties, which is likely to continue due to rise in demand because of preference of owning a house among millennials and rising cost of construction.

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