New Delhi, September 16 (Daily Kiran) : The Housing Price Index (HPI) in India saw an annual increase of 3.6% during the first quarter of the fiscal year 2026 (April-June), maintaining a similar growth rate to the previous year. In the fourth quarter of FY26, the index had risen by 4.5%. This data indicates a stable residential market in the country, as reported in a recent release.
According to a report from Bank of Baroda, the HPI grew by 1.1% on a quarterly basis in the first quarter of FY27, surpassing the 0.5% growth recorded in the fourth quarter of FY26. Additionally, housing credit growth reached 11% in the first quarter of FY27.
The report highlights the impact of rising input costs on inflation in the housing sector. Increases in global commodity prices and construction costs have contributed to higher home prices.
Global growth has faced pressure due to conflicts in West Asia, leading to increased commodity prices and supply chain disruptions. Consequently, inflation in India spiked in the first quarter of FY27, affecting various industries.
Cities contributing significantly to the annual growth of the HPI in the first quarter of FY27 include Chandigarh (49.6%), Jaipur (36.4%), Kanpur (27.5%), Lucknow (17.7%), and Thiruvananthapuram (16.3%). The surge in Chandigarh’s prices is attributed to recent changes in the collector rate, effective April 1, 2026, along with a shortage of new land.
Conversely, cities such as Delhi (-1.2%), Kolkata (-31.5%), Mumbai (2.8%), and Hyderabad (-0.8%) experienced declines or sluggish growth during the same period.
Improved connectivity and increasing job opportunities in the service sector are driving demand in tier-2 cities, overshadowing larger metropolitan areas.
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