Rising home prices -signs of improving residential market

The gradual pick up in home prices across India is a clear indicator that the post-pandemic housing market is picking up which is a good sign for the real estate growth in the coming months.

 According to its recent quarterly report released  by the Reserve Bank of India, the all-India Home Price Index (HPI)  of the RBI has recorded 2.6 percent yoy growth in the September, 2021 quarter, compared to 2 percent growth in the previous quarter. and 1.1 percent in the previous year.  Home price index in Mumbai rose to 279.8 in the September quarter , up from 265.9 in the year ago quarter and 203 in Q1 of last year. The Kochi index rose to 297.2 in Q2 , up from 287.3 in Q1. The HPI is based on transaction data from housing authorities, especially in ten major cities.

Says Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” The construction material prices and skilled labour cost has been increasing in recent times.  However, in order to push sales and cut inventory, developers have been absorbing these increased costs. But, going forward , this trend of marginal rise in home prices may well gain momentum, prompting prospective home buyers not to delay their decision to buy home.

Add a Comment

Your email address will not be published. Required fields are marked *