National Housing Bank releases the NHB RESIDEX for Quarter ended June 2022. The Housing Price Index (HPI) tracks the movement in prices of residential properties in select 50 cities on a quarterly basis with FY 2017-18 as the base year.

The 50city HPI based on valuation prices of properties collected from Primary Lending Institutions (HPI @ Assessment Prices) recorded an annual increase (Y-o-Y) of 7.0% in QE June 2022 as compared with 1.8% a year ago.

The annual change in HPI @ Assessment Price varied widely across the cities – ranging from an increase of 16.1% (Coimbatore) to a decline of 5.1% (Navi Mumbai).

The three prominent cities of Telangana and Andhra Pradesh i.e., Hyderabad (11.5%), Vizag (6.7%) and Vijayawada(3.0%) recorded significant improvement in the index on an annual basis.

On a sequential (Q-o-Q) basis, the 50-city index registered an expansion of 1.7% in April-June 2022 as against 2.6% in the previous quarter. The index is showing an increasing trend on Q-o-Q basis since June-21.

Hyderabad (1.9%), Vijayawada (2.0%) and Vizag (0.8%) recorded moderate improvement in index during quarter April - June 2022 on a sequential basis.

The 50 city HPI @ Market Price for Under Construction Properties computed using the quoted prices for under construction and ready-to-move unsold properties, also recorded an annual increase (Y-o-Y) of 5.7% in QE June 2022 as against 1.9% a year ago backed by rising cost of building materials.

The annual variation in HPI@ Market Price ranged from an increase of 28.6% (Bhubaneshwar) to a contraction of 13.2% (Indore).

Hyderabad (5.7%), Vijayawada (4.3%) and Vizag (9.0%) recorded an annual increase in the index during QE June 2022.

On a sequential (Q-o-Q) basis, the 50 city Index witnessed an increase of 1.8% during the quarter compared to 1.9% in previous quarter. The uptick in the asking prices for properties is indicative of continued demand and rising cost of construction.

While cities like Hyderabad (0.7%) and Vijayawada (2.1%) witnessed moderate improvement in the index during April - June 2022, Vizag recorded significant improvement in the asking prices resulting in an improvement of 9.0% in the index during April – June 2022 on a sequential basis.

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