Housing prices rise in 43 cities in March quarter of FY23

Housing prices rose in 43 cities in India in the fourth quarter of 2022-23 ending March, according to National Housing Bank (NHB) data released. This was out of the 50 cities in the country it tracked, and noted that seven cities saw a fall in property prices.

Ahmedabad saw the highest rise at 10.8 percent, followed by Bengaluru (9.4 percent), Chennai (6.8 percent), Delhi (1.7 percent), Hyderabad (7.9 percent), Kolkata (11 percent), Mumbai (3.1 percent) and Pune (8.2 percent), as per the Housing Price Index (HPI) published by NHB.

The 50-city index exhibited a growth of 1.3 percent in the January-March 2023 quarter, showing a slight decline from the previous quarter's expansion of 1.5 percent. However, it is noteworthy that the index has been consistently increasing on a quarterly

basis since June 2021. The overall valuation of properties, based on the assessment of prices of properties got through banks and housing finance companies, registered an annual increase of 5.8 percent during the fourth quarter of FY23 as compared with 5.3 percent a year ago.

The annual change in Housing Price Index had a wide range across cities, from an increase of 19.6 percent (Gandhinagar) to a decline of 12.9 percent (Ludhiana). The home loan rates are still lower than that of pre-Covid period leading to a healthy affordability overall, it said.

In terms of the supply side, the 50-city HPI, which considers quoted prices for under-construction and ready-to-move unsold properties (HPI@ Market Price for Under Construction Properties), experienced a significant annual growth of 11.7 percent in the March quarter, compared to 4.8 percent recorded a year ago.

This surge in quoted prices can be attributed to a combination of factors, including the partial transfer of increased input costs and heightened demand for ready-to-move-in properties, particularly in the affordable segment.