NHB’s HPI up 7.4 pc YoY in Q2

New Delhi, Nov 28 (Mayank Nigam) The National Housing Bank’s housing price index (HPI) recorded a 7.4 per cent year-on-year increase in the quarter ended September 30, 2022. Housing Price Index (HPI) tracks the movement in prices of residential properties in select 50 cities on a quarterly basis with FY 2017-18 as the base year. The annual change in HPI @ Assessment Price varied widely across the cities – ranging from an increase of 20.2% (Gandhinagar) to a decline of 2.3% (Bhiwadi). Out of the 50 cities, 46 cities registered an increase in the index whereas 4 cities registered decline on an annual basis. All of the eight major metros of the country viz., Ahmedabad (13.9%), Bengaluru (6.0%) , Chennai (11.6%), Delhi (6.7%), Hyderabad (10.9%), Kolkata (6.8%), Mumbai (2.4%) & Pune (5.0%) recorded increase in the index on an annual basis.

On a sequential (Q-o-Q) basis, the 50-city index registered an expansion of 1.2% in July-September 2022 as against 1.7% in the previous quarter. The index is showing an increasing trend on Q-o-Q basis since June-21. While Ludhiana, Bhiwadi, Howrah, Thiruvananthapuram, Panvel and New Town Kolkata recorded sequential decline in the HPI @ Assessment Price during the quarter (Ludhiana recording the maximum decline of 7.3%), the index recorded increase in 44 cities with Kochi recording the highest sequential improvement of 7.4%. The 50 city HPI @ Market Price for Under Construction Properties computed using the quoted prices for under construction and ready to move unsold properties, also recorded an annual increase (Y-o-Y) of 8.5% in QE September 2022 as against 2.9% a year ago.

The annual variation in [email protected] Market Price ranged from an increase of 37.7% (Bhubaneshwar) to a contraction of 6.5% (Indore). On a sequential (Q-o-Q) basis, the 50 city Index witnessed an increase of 3.7% during the quarter compared to 1.8% in the previous quarter. The rising cost of construction is showing an impact on the asking prices of the property. ”There has been a sustained increase in the Indices post COVID-19. The improvement has been more prominent in the Tier II and Tier III cities and the momentum is expected to continue backed by positive home buyer sentiment,” a statement from the NHB said.