The National Housing Bank (NHB) released a report on Thursday indicating an ongoing trend of rising property prices across the country.
According to the report, the fourth quarter of the previous financial year (2022-23), spanning from January to March, saw an increase in property prices in 43 cities.
Notably, eight major housing markets in India experienced a surge in property prices during this period, with Ahmedabad, Bangalore, and Chennai leading the way.
Ahmedabad Takes the Lead in Property Price Growth
Based on the Housing Price Index (HPI) published by the NHB, Ahmedabad witnessed the highest increase in house prices, growing by 10.8 percent on a yearly basis.
Bangalore followed closely behind with a growth rate of 9.4 percent, and Chennai saw a rise of 6.8 percent.
Other notable cities that experienced property price growth include Delhi (1.7 percent), Hyderabad (7.9 percent), Kolkata (11 percent), Mumbai (3.1 percent), and Pune (8.2 percent).
The HPI data relies on valuation information provided by banks and housing loan companies.
Overall, the HPI for these cities increased by 5.8 percent annually during the fourth quarter, with a specific rise of 5.3 percent in March 2022.
Property Prices Decline in Seven Cities
Out of the 50 cities surveyed, the data revealed a decrease in house prices in seven locations.
Despite the decrease, the housing sector has been able to maintain growth due to consistently low interest rates on home loans since before the Covid-19 pandemic.
Home loan borrowers can find relief in the fact that the Reserve Bank of India (RBI) has not made any changes to the repo rate, ensuring stability.
Furthermore, if the RBI decides to reduce interest rates in the future, it may result in lower EMIs (Equated Monthly Installments),
potentially increasing the demand for houses and subsequently driving prices even higher.
