Q4 of FY21 sees recovery in housing prices as pandemic tapers: CARE Ratings

All India Housing Price Index rose 2.7% YoY in Q4FY21. Going forward, movement in HPI would be influenced by demand-side factors as well as inventory levels

Housing prices appeared to be recovering in Q4 of FY21 as the economy emerged gradually from the pandemic, CARE Ratings said today.

The All India Housing Price Index moved at a rate of 2.7 per cent YoY in Q4FY21 to 285.1, from 278.1 in Q4FY20. This growth the RBI HPI was apparently a major step in upwards, as it had risen from 1.1 per cent in Q2 to 2.2 per cent in Q3 of the year.

However, the second wave that came in April disrupted the sector. While some pent-up demand could emerge during the year, the impact on prices