RBI's Housing Price index up 4.5% in Q2, Kochi tops chart with 11.5% rise

Four of the 10 cities in the index recorded sequential contraction, the others posted expansion

Reflecting buoyancy in demand for dwellings, the Reserve Bank's All-India House Price Index (HPI) grew by 4.5 per cent year on year during the second quarter ended September 2022.

The HPI had grown by 3.5 per cent in the previous quarter and by 2.4 per cent a year ago, RBI said in a statement.

RBI’s HPI is based on transaction-level data received from the registration authorities in ten major cities in the country. These cities are: Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai.

The YoY movements in HPI varied widely across the cities, ranging from a growth of 11.1 per cent (Kochi) to a contraction of 4.1 per cent (Jaipur).

While Ahmedabad, Kolkata, Chennai and Jaipur recorded sequential contraction in the index, the other six cities recorded expansion.

The credit offtake for homes has been on the rise, in tandem with the sale of housing units and prices.  Bank credit for housing, including priority sector lending, rose by 16 per cent YoY this September, as against 12.2 per cent a year ago. Outstanding housing loans stood at Rs 18.05 trillion in September 2022, RBI data showed.