Housing prices rose in 43 cities in Q1 of FY24: National Housing Bank

New Delhi: Housing prices rose in 43 cities in the first quarter of 2023-24, while the rates of residential units fell in seven cities, according to National Housing Bank (NHB).

In a Housing Price Index published by NHB, the regulator for housing finance companies said the home loan rates are still lower than the pre-pandemic rates leading to a healthy affordability overall.

Eight key primary residential markets -- Ahmedabad witnessed a 9.1 per cent appreciation in property prices while Bengaluru 8.9 per cent and Kolkata 7.8 per cent during the April-June 2023 period.

Other cities like Chennai saw 1.1 per cent, Delhi (0.8 per cent), Hyderabad (6.9 per cent), Mumbai (2.9 per cent) and Pune (6.1 per cent) increase in the index on an annual basis as per the Housing Price Index (HPI).

The 50-city HPI based on valuation prices of properties collected from banks and housing finance companies (HPI @ Assessment Prices) recorded an annual increase (Year-on-Year) of 4.8 per cent during the first quarter of FY24 as compared with 7 per cent a year ago, it said.

The annual change in HPI @ Assessment Price varied widely across the cities - ranging from an increase of 20.1 per cent (in Gurugram) to a decline of 19.4 per cent (in Ludhiana).

On a sequential (Q-o-Q) basis, the 50-city index registered an expansion of 0.7 per cent in April-June 2023 as against 1.3 per cent in the previous quarter. The index is showing an increasing trend on Quarter-on-Quarter basis since June 2021.

The index recorded increase in 36 cities out of 50 cities, with Chandigarh recording the highest sequential increase of 4.9 per cent, while Navi Mumbai, Ludhiana, Howrah and Bhiwadi, recorded sequential decline with more than 2 per cent in the HPI @ Assessment Price during the quarter (Navi Mumbai recording the maximum decline of 5.9 per cent).

On a sequential basis, the 50-city index witnessed an increase of 2.3 per cent during the quarter as against 2.6 per cent in the previous quarter.