House Price Index (HPI) India

The All-India House Price Index grew by 3.6% YoY in Q1 2019.


Published by the Reserve Bank of India (RBI) quarterly. Updated until the Jan-Mar 2019 quarter. (Published on July 3rd, 2019)

Recent Data Trend

The growth in house prices after falling to an all-time low of 2.8% in the last quarter again started to embark upon its rising momentum to grow at 3.6% year on year (YoY) in Jan-Mar’19.

Chennai has recorded a 10-quarter high housing inflation growth of 12.4% YoY, as against 8.7% YoY housing inflation in the comparable quarter last year, while the house prices in Bangalore grew at 5.1% YoY after contracting to 0.8% YoY in the last quarter. On the contrary, four out of ten major cities recorded a slowdown in average house price inflation in Q4FY19. Mumbai has recorded an all-time low house price inflation growing at just 1.6% YoY in Q4FY19. Jaipur and Kanpur, with an exception contracted by -11.4% and -2.2% YoY respectively, house price inflation in Jaipur being the lowest in 9-quarters.

Even after two and a half years since the BJP led NDA-1 announced demonetization of the higher currency notes, the real estate sector, the worst survivor of the incident, is still trying to recover from its wounds. Since then several measures were taken by the central government to enhance the growth in the real estate sector.

Modi government in its first term was applauded for bringing some landmark steps to propel the Indian real estate industry. Real Estate Act (RERA), Real Estate Investment Trust (REIT) and GST (Goods and Services Tax) were contributing factors in bringing the industry towards being more organized, transparent and structured. The government took steps to uplift infrastructure through measures like affordable housing, new industrial corridor, 100 smart cities plan, and others.

With the BJP led-NDA-2 winning the general elections with a majority, one of the major targets that lie ahead is the ambitious plan of ‘Housing for All’ to gain steady momentum. In 2015, NDA-1 announced that by 2022, housing will be provided to every citizen in India. So we think that the government should start working diligently so that the target can be achieved.

Finance Minister Nirmala Sitharaman is scheduled to chair her maiden budget on Friday, 5th July. We are expecting that the finance minister may announce some form of tax benefits or other incentives to give a boost to the sector.

Brief Overview

The House Price Index (HPI) (Base: 2010-11=100) is compiled quarterly by the Reserve Bank of India (RBI) for ten major cities, viz, Mumbai Delhi, Chennai, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur, Kanpur, and Kochi. Based on these city indices, an average house price index representing all-India house price movement is also compiled. These indices are based on the official data of property price transactions collected from registration authorities of respective state governments. The HPI is a weighted average Laspeyres index based on the transaction price, where transactions are stratified into three categories, viz., small, medium and large houses and in different geographical wards/zones. Further, the city-wise indices are averaged using the population proportion to total as the weight to obtain an all-India index. For further information on the methodology and computation of HPI click here.

For more information please visit the official website.

Next Release Date: First week of October

City-wise Housing Price Index-NHB Residex

Note: The index series is on the base 2012-13=100. To know more about NHB Residex, click here.