Real estate prices on the upswing: RBI report

Housing prices across India increased by 13.7 per cent during July-September of the current fiscal compared with the year-ago quarter but the annual growth rate has slowed down, according to the Reserve Bank of India (RBI) report.

Delhi witnessed the maximum rise with nearly 22 per cent increase in prices during the quarter over the last year, according to the quarterly House Price Index (HPI) released by the RBI on Friday.

RBI's House Price Index (HPI) is based on the housing prices in ten major cities, including Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur, Kanpur and Kochi.

The All-India Housing Price Index (base 2010:11=100) increased to 219.5 in the second quarter of 2015-16 from 215.3 in the first quarter, mainly due to increase in index numbers in Delhi, Ahmedabad and Chennai, RBI said in a statement.

HPI for Kolkata, Kochi and Bengaluru, however, decreased in July-September 15-16 from the previous quarter.

On a year-on-year basis HPI at the national level (combined) further declined to 13.7 per cent in Q2 of 2015-16 from 14.5 per cent in Q1 of 2015-16 and 17.5 per cent in Q4 of 2014-15, mainly due to decline of y-o-y growth of HPI of Kolkata, Jaipur and Lucknow.

Year-on-year growth of HPI in Q2 of 15-16 was maximum for Delhi (21.9 per cent), whereas it was minimum in Kochi (-7.2 per cent).

Sequentially (quarter-on-quarter), HPI for Kanpur witnessed highest growth (110.4 in Q2 of 15-16, 5.51 per cent increase over Q1 whereas, Kolkata witnessed maximum fall in HPI (224.1 in Q2 of 2015-16, a -3.13 per cent decrease over the previous quarter.