Average property rates in India’s 10 mega cities increased by 2.7% year-on-year in Q4 of FY 2021, shows RBI’s All India HPI

 

According to the RBI’s All India House Price Index (HPI), average property rates in these cities increased 2.7% year-on-year in the fourth quarter (Q4) of 2020-21 (FY 2021) when compared to a 3.9% growth a year ago, a time before the first wave of the Coronavirus pandemic hit India, forcing it to announce one of the severest lockdowns in the world that battered the economy by adversely impacting businesses.

 

On a quarter-on-quarter basis, however, all-India HPI growth rate moderated to 0.2% in Q4.

 

The Reserve Bank of India’s quarterly HPI for January-March 2021 is based on transaction-level data received from registration authorities in 10 major cities. The 10 cities covered in the analysis were Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai.

 

Also, large variations in price growth were witnessed across these housing markets. While average property rates increased by 15.7% in Bengaluru, property values in the Pink City Jaipur shrunk 3.6% y-o-y.

 

Barring some cities, where average property values showed a decline, all the other cities covered in the HPI recorded a positive quarter-on-quarter growth.

 

Price growth in major housing markets during previous quarters in FY 2021

 

According to a report by CARE Ratings, housing prices showed an increase of only 1.4% in the first three quarters of FY 2021 after growing at a compounded annual growth rate of 5.6% in the specified period of five years. However, reverse migration caused by the COVID-19 pandemic pushed up property values in tier-2 cities, which witnessed relatively higher increases in prices. Cities like Ahmedabad, Lucknow, Kanpur and Kochi saw average values increasing by over 8% during the three quarters, the rating agency said.

 

Source: www.housing.com