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The National Housing Bank's latest housing price index shows residential values rising in 45 of 50 cities, with Bengaluru recording the steepest annual gains driven by its strong IT and economic base. Chennai, Ahmedabad, Pune, Mumbai, and Kolkata also posted solid growth, while only five cities saw declines, led by Howrah. On a composite level, prices rose 5.7% year-on-year, slightly slower than last year but reflecting market stabilisation after rapid increases. Quarterly data also showed continued growth, supported by a nearly 100-basis-point cut in home-loan rates earlier this year. The report highlights resilient demand in metro markets despite uneven performance in smaller cities.
The National Housing Bank has released its latest housing price index, showing a clear upward trajectory in the majority of Indian cities. Out of 50 cities under review, 45 recorded annual increases in residential property values. The steepest appreciation was observed in Bengaluru, which continues to attract both end-users and investors owing to robust economic activity and a thriving IT sector. Chennai, Ahmedabad, Pune, Mumbai and Kolkata also featured prominently with solid gains, underlining the strength of larger metropolitan markets. Advertisement
In contrast, only five cities experienced declines, with Howrah suffering the sharpest fall. Kochi and Thiruvananthapuram were also among the weaker performers, highlighting that not all regional markets have been able to sustain price momentum. The variation in trends between tier-I and smaller markets underscores the uneven nature of growth across the country.
On a composite level, the 50-city index recorded an annual rise of 5.7 per cent. While the rate was lower than the growth seen in the previous year, it still confirmed resilience in residential values. Observers explained that the moderation in expansion is part of a natural stabilisation process after several quarters of rapid price escalation.
Quarterly performance has also been encouraging, with sequential data reflecting another increase compared with the preceding quarter. This steady rise indicates that despite challenges in certain pockets, the overall demand environment remains supportive. Analysts also pointed to the reduction of nearly 100 basis points in home-loan interest rates earlier this year, which has helped strengthen affordability and improved buyer sentiment.
Overall, the NHB report highlights that Indian housing markets are broadly maintaining an upward course, led by metropolitan cities and aided by favourable financing conditions, even as select regional markets lag behind.
Source: PTI
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