Mumbai’s real estate prices seem to be immune to the economic slowdown. When most Indian cities showed a decline in prices as at the end of March, Mumbai’s real estate prices showed the highest sequential rise, according to Housing Price Index (HPI) of the Reserve Bank of India.
The HPI is constructed taking data from housing registration authorities in ten major cities -- Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai.
While all-India HPI contracted by 0.2 per cent on a quarter on quarter basis, largely due to decline in the house prices in Delhi, Bengaluru, Ahmedabad and Jaipur; Mumbai recorded the highest sequential rise. However, Mumbai had witnessed a drop in the third quarter over the second quarter of the previous fiscal (FY20).
On a year-on-year basis, however, the all-India HPI increased by 3.9 per cent in the fourth quarter from 3.0 per cent in the previous quarter and 3.6 per cent a year ago.
“It varied widely across cities and ranged from 22.6 per cent (in Jaipur) to (-)13.8 per cent (in Kochi)," the central bank said.
Note: *Chennai index is based on both residential and commercial properties; All India index is a weighted average of city indices, weights based on population proportion; **(P) Provisional indexes which will be finalized by next quarter. Source: RBI