Rising housing sales push up property rates in top 8 cities

Housing sales increased in 2022, which drove the prices in most parts of the country. According to Economic Survey for 2022-23, all the eight major metros in the country — Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune — recorded increases in housing price index (HPI) between September 2021 and September 2022.
Overall, the composite HPI based on market prices of 50 cities in the country improved by 5.1% during the year ending September 2022. The annual variation in HPI market price ranged from an increase of 37. 7% in Bhubaneswar to acontraction of 6. 5% in Indore in the quarter ending (QE) September 2022 over QE September 2021.
Among eight cities, Delhi NCR witnessed highest rise in the HPI market price at 21. 6%, followed by Kolkata at 16. 8%, Pune at 13. 8% and Bengaluru at 12. 7% between September of 2021 and 2022. Housing price indices in Mumbai during the one year improved by 5. 1%, 10% in Ahmedabad, 7% in Hyderabad, and 3% in Chennai.
The overall increase in composite HPI market prices indicates a revival in the housing finance sector. A stable to moderate increase in HPI also offers confidence to homeowners and home loan financiers in terms of the retained value of the asset, the survey said.