The Reserve Bank of India’s (RBI) House Price Index (HPI) grew by 4.5 per cent year-on-year (y-o-y) in the second quarter of 2022-23, compared to 3.5 per cent in the previous quarter.
The y-o-y movements in HPI varied widely across the cities, ranging from 11.1 per cent growth in Kochi to a 4.1 per cent contraction in Jaipur.
The quarterly HPI report was based on the transaction data received from the registration authorities in 10 major cities: Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.
"On a sequential (q-o-q) basis, all India HPI increased by 0.4 per cent in Q2 2022-23, while Ahmedabad, Kolkata, Chennai, and Jaipur recorded sequential contraction in the index, it rose for the remaining cities," RBI said in a statement.
With the property market still in an upcycle, Indian lenders could expect quality home loan books, it said. In India, people either take loans from banks or non-banking financial institutions (NBFCs) to buy property.
On October 31, RBI said bank loans for residential real estate increased by 16 per cent y-o-y to Rs 18.058 lakh crore as of September 30.
Also, housing sales rose 60 per cent y-o-y in January-June this year across eight major cities with 1,58,705 units sold, the highest half-yearly demand in nine years, driven by lower base effect and mortgage rates, according to Knight Frank India, a real estate consultant.
Housing sales stood at 99,416 units in the first six months of 2021, the consultant said in the 17th edition of the half-yearly report 'India Real Estate: Residential and Office Market H1 2022', released on Wednesday through a webinar.
