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India's housing market continued its moderate growth trend this year, with the All-India House Price Index (HPI) rising 3.6 percent year-on-year in the first quarter of FY2025-26, according to data released by the Reserve Bank of India. The index, now calculated with a new base year of 2022-23, reflects price movements across 18 major cities. Nagpur, Chandigarh, Chennai, and Kochi recorded the highest sequential price gains, while the overall quarterly increase stood at 2 percent. The inclusion of eight additional cities has broadened the coverage of the updated index.
India's housing sector has maintained steady price growth, according to the latest All-India House Price Index (HPI) released by the Reserve Bank of India (RBI) earlier this week. Based on transaction-level data from 18 major cities, the index recorded a 3.6 percent year-on-year increase in the first quarter of the current financial year. The HPI serves as a key indicator of residential property price trends across the country, tracking price changes from data submitted by state registration authorities. Advertisement
For this quarter, the RBI released the index using a revised base year of 2022-23, replacing the earlier base of 2010-11. The revision reflects efforts to update the dataset in line with evolving market patterns and recent property transaction trends. The new series also expands the geographical coverage of the HPI, capturing a more diverse picture of housing markets across both metro and non-metro cities.
On a sequential basis, the HPI registered a 2 percent increase compared with the previous quarter, indicating stable demand and pricing momentum across the housing market. Among the cities surveyed, Nagpur, Chandigarh, Chennai, and Kochi posted the highest quarter-on-quarter price increases, suggesting stronger market activity and localized growth in these areas.
The updated index now includes eight new cities Hyderabad, Thiruvananthapuram, Pune, Ghaziabad, Thane, Gautam Buddha Nagar, Chandigarh, and Nagpur bringing the total number of cities covered to 18. The remaining cities from the earlier series are Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur, Kanpur, and Kochi.
The RBI's report noted that while the overall growth of 3.6 percent in the first quarter was slower than the 7.6 percent recorded in the same period last year, the data indicates continued stability in residential property values. Analysts believe that steady mortgage rates and sustained demand from end-users, especially in mid-income and premium segments, have helped keep housing prices firm.
The moderation in annual growth compared to last year is seen as part of a natural market correction after rapid price rises in earlier quarters. The inclusion of additional urban centres in the new series also provides a more representative measure of the housing market's performance nationwide.
Source PTI
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