House Price Index (HPI) India

House price inflation lowest in over six years.


Published by the Reserve Bank of India (RBI) quarterly. Updated until the January -March 2018 quarter. (Published on July 19, 2018)

Recent Data Trend

The All-India House Price Index (HPI) grew by 6.7% year on year (YoY) in Jan-Mar'18 (Q4FY18), slowing down from a peak of 10.5% YoY growth in the corresponding period a year ago. This resulted in an annual inflation of 7.5% in 2017-18 (FY2018), lowest in over six years. The 7.5% inflation is way below the annual average inflation during 2011-17 (12.8%).

Seven out of the ten major cities recorded a slowdown in average house price inflation in Q4FY18 compared to the year-ago quarter. The house price inflation in Mumbai slowed down to a 5-year low of 5.5% YoY during Q4FY18, while Ahmedabad (7% YoY), Kolkata (5.1% YoY) and Kanpur (16.4% YoY) have over a year low inflation in the housing segment.

The real estate sector in India was impacted by the subsequent implementation of GST and Real Estate (Regulation and Development) Act (RERA) post demonetization resulting in the continued moderation in the housing inflation in the last two years. In terms of average annual progress, the annual inflation in housing has fallen from close to 24% in FY2012 to around 7.5% in FY2018.

As per a report by Knight Frank, a real estate agency, the real estate is in a slump and sale of residential spaces has remained stagnant in the first half of 2018.

The rising NPAs in the housing finance might have also affected the finance mobilisation in the housing segment. As per RBI's Financial Stability report of June 2018, the gross non-performing advances ratio for housing finance assets increased to 1.5% in Mar'18 from 1.28% in Mar'17.

The impact of RERA is likely to induce confidence among buyers in the long-term and with GST stabilising the builders might be able to mobilise finances and helping the housing industry to recover.

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 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 methodology and computation of HPI click here.

For more information please visit the official website.

Next Release Date: To be decided

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.