Housing prices rose in 12 cities including Delhi in second quarter

Housing prices rose in 12 cities by up to 5.3 per cent, and declined in 10 cities, including the national capital, by up to 7 per cent during the second quarter of the current financial year ended 30  September.

Housing prices in Delhi fell 4.5 per cent during the July-September period as against  the previous quarter, however, prices were up 6.7 per cent on annual basis, as per Residex released by National Housing Bank (NHB).

On annual basis, the prices in Delhi were up by 6.7 per cent with Meerut showing the maximum price moderation at 6.9 per cent. The highest rate appreciation was, however, witnessed in Kolkata by 5.3 per cent.

The residential property price movement for the July-September quarter had shown increasing trend in 12 cities ranging from 0.5 per cent in Mumbai to 5.3 per cent in Kolkata, with a fall in 10 cities ranging from 0.9 per cent in Bengaluru to 6.9 per cent in Meerut, NHB said in a statement (See: Housing prices show mixed trends across India in Q2).

Meanwhile, residential property prices in 12 cities, including Mumbai, Hyderabad and Chennai, were up in July-September quarter, as against a year ago, according to the National Housing Bank (NHB) reidenial property price Residex.

Residex has been tracking residential property movement on a quarterly basis since 2007.

The index has expanded from January-March to include six more cities -- Chandigarh, Coimbatore, Dehradun, Meerut, Nagpur and Raipur.

The transactions data are collected from diverse sources and are then classified, validated and applied to a model designed to give the representative index for each city.

In April-June, however, 22 cities, including Delhi, Mumbai, Pune, Bangalore and Chennai, saw price declines after two years. According to experts, developers were resorting to price cuts to spur demand.

The Hindustan Times cited a person tracking the sector saying that with prices moving up, it seemed real estate would soon rebound.

The newspaper however cited an executive with a leading developer as saying it was too early to comment on where the sector was moving and whether it would revive soon.

He said, the prices would keep fluctuating till elections and only after some stability in the economy and political environment, would the prices move in a direction.