House price index growth uneven across cities, falls overall in March quarter

According to the RBI, all-India HPI increased (year-on-year) by 2.7 per cent in Q4 of 2020-21 as against 3.9 per cent growth a year ago.

The growth in house prices in the country has declined in the March quarter of financial year 2021 if the Reserve Bank of India’s house price index is any indication.

According to the RBI, all-India HPI increased (year-on-year) by 2.7 per cent in Q4 of 2020-21 as against 3.9 per cent growth a year ago. HPI growth showed large variation across major cities, from an increase of 15.7 per cent (Bengaluru) to a contraction of (-) 3.6 per cent (Jaipur).

On a sequential (quarter-on-quarter) basis, all-India HPI growth rate moderated to 0.2 per cent in the fourth quarter of 2020-21, the RBI said. Meanwhile, as per a survey report of Confederation of Real Estate Developers’ Associations of India, over 95 per cent developers feel inevitable project delays if no urgent relief steps are injected by the government and the RBI.

Harsh Vardhan Patodia, president, CREDAI National, said, “The real estate sector showed tremendous resilience in bouncing back on a cautious recovery path post the first wave, despite little relief measures.”

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