The year-on-year movements in HPI varied widely across cities. With a 14.9 per cent year-on-year increase in Q12024, Delhi witnessed the highest growth in the Housing Price Index. Mumbai came second in the list with a 7.6 per cent year-on-year rise during the June quarter. The home price index of Bengaluru increased by 5 per cent year-on-year in Q12024. The home price index rose by 4.5 per cent year-on-year during Q12024 in Lucknow. The home price index jumped by 2.5 per cent y-o-y in the June quarter in Kanpur. Chennai home price index saw a slight rise of 2 per cent year-on-year in the June quarter.
In a few cities the home price index saw a decline. Kolkata home price index saw the steepest contraction of 6.6 per cent year-on-year in the June quarter. However, it has improved slightly from a decline of 8.2 per cent in Q42023. The home price index shrank by 2.2 per cent year-on-year in the June quarter in Jaipur. The home price index in Ahmedabad also declined by 2.1 per cent year-on-year in Q12024.
All-India House Price Index (HPI) for Q12023-24
|City||Q12022-23||Q12023-24 **(P)||YoY change|
|ALL INDIA HOME PRICE||296.61||311.9||5.1%|
*Chennai index is based on both residential and commercial properties.
All India index is a weighted average of city indices, weights based on population proportion.
**(P) Provisional indexes which will be finalized by next quarter.
Source: Reserve Bank of India“On a sequential basis, All-India HPI increased by 2.6 per cent in Q12023-24, eight of the ten cities witnessed housing registration price increase vis-a-vis the previous quarter,” according to the Reserve Bank of India. The RBI’s home index is based on transaction-level data received from the registration authorities in the top ten major cities — Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.
Pause in repo rate hike has boosted homebuyers’ sentiment
Back-to-back pause in repo rate hike by the Reserve Bank of India since February 2023, has boosted the sentiment of the homebuyers, believed many experts. The RBI kept the benchmark repo rate unchanged for the third consecutive time in the August Monetary Policy Committee (MPC) meeting. “With repo rate stabilising since February 2023 at 6.5 per cent, homebuyers’ sentiments remain positive due to greater visibility on monthly EMIs…Housing demand is likely to further accelerate in the next few quarters led by the upcoming festive season and continued preference for home ownership,” said Vimal Nadar, Senior Director and Head of Research at Colliers India.