National Housing Bank (NHB) reveals encouraging growth and affordability in the housing sector
In a recent report published by the National Housing Bank (NHB), it has been highlighted that the Indian real estate market experienced a significant upswing during the fourth quarter of the 2022-23 fiscal year. The report indicates a positive momentum as housing prices soared in 43 out of 50 major cities across the country. This development brings optimism to the real estate industry and potential homebuyers.
According to the 50-city Housing Price Index (HPI) included in the NHB report, several metropolitan areas stood out for their impressive price hikes. Leading the charge was Kolkata, with a remarkable surge of 11 percent. Following closely behind were Ahmedabad at 10.8 percent, Bengaluru at 9.4 percent, Pune at 8.2 percent, and Hyderabad at 7.9 percent. Chennai, Mumbai, and Delhi also experienced moderate price increases, with hikes of 6.8 percent, 3.1 percent, and 1.7 percent, respectively.
While the majority of cities witnessed an upward trend, the NHB report acknowledges that seven cities recorded a decline in property prices during the same period. Notably, Delhi, Navi Mumbai, Kochi, Coimbatore, Raipur, Faridabad, Bidhan Nagar, and New Town, Kolkata experienced a sequential decline in prices. Raipur saw the steepest decrease of 6.7 percent, primarily attributed to projects launched by the Raipur Municipal Corporation targeting the economically weaker sections (EWS) and low-income groups (LIG).
The HPI, which collects data on property prices from banks and housing finance companies, reveals an annual increase of 5.8 percent during the fourth quarter of the fiscal year 2022-23. This growth outpaced the 5.3 percent increase reported in the previous year, indicating a positive trajectory for the real estate market.
It is worth noting that price changes varied significantly across cities, with Gandhinagar witnessing the highest annual jump of 19.6 percent, showcasing robust growth and investment potential. On the other hand, Ludhiana experienced a temporary slump of 12.9 percent, highlighting the dynamic nature of the real estate landscape.
Looking at the sequential basis, the 50-city index exhibited a steady expansion of 1.3 percent during January-March 2023, slightly lower than the 1.5 percent growth recorded in the previous quarter. This modest increase reflects a stable and resilient real estate market.
The NHB report also emphasizes the positive impact of home loan rates, which remain lower than pre-pandemic levels. This has significantly enhanced affordability for potential homebuyers, further bolstering the industry’s overall outlook.
The encouraging trends in the housing market, as outlined in the NHB report, present a promising landscape for real estate enthusiasts and industry professionals alike. As the sector continues to rebound and thrive, prospective buyers can confidently explore opportunities with the knowledge that housing prices are on an upward trajectory and home loan rates remain favorable.
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