India's House Price Index Grows 3.1% in Q3: RBI Data Highlights
The Reserve Bank of India (RBI) reports a 3.1% increase in the All-India House Price Index (HPI) for the third quarter of 2024-25. This growth is a slowdown compared to the previous quarter's 4.3% and the year-ago period's 3.8%. The quarterly report, base
House Price IndexRbiReal EstateHousing MarketProperty TrendsReal Estate NewsFeb 27, 2025
This growth is a deceleration from the 4.3% increase observed in the preceding three months and the 3.8% growth recorded in the same period last year.
The HPI report, which is based on transaction-level data collected from the registration authorities in 10 major cities—Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai—provides a comprehensive overview of the real estate market trends across these regions.
One of the key findings of the report is the significant variation in annual HPI growth across the cities.
Kolkata saw the highest annual growth at 8.1%, while Kanpur recorded the lowest at just 0.1%.
On a sequential (quarter-over-quarter) basis, the all-India HPI increased by 0.4% in Q3 2024-25.
Several cities, including Mumbai, Bengaluru, Ahmedabad, Lucknow, Kolkata, Chennai, Jaipur, and Kochi, experienced a sequential rise in house prices during the latest quarter.
The varying growth rates highlight the diverse dynamics of the housing market in different parts of the country.
For instance, Kolkata's strong performance can be attributed to a combination of factors such as improving infrastructure, increasing investment, and a relatively stable economic environment.
On the other hand, Kanpur's minimal growth may be due to challenges such as limited job opportunities and slower development.
The RBI's quarterly house price index is a crucial tool for policymakers, real estate developers, and investors to gauge the health of the property market.
It helps in making informed decisions and formulating strategies to promote sustainable growth in the sector.
The data also serves as a valuable resource for researchers and analysts studying trends in the housing market.
Looking ahead, the real estate sector is expected to continue its recovery, driven by government initiatives, low-interest rates, and a gradual improvement in the economic outlook.
However, challenges such as regulatory compliance, liquidity constraints, and demand-side issues will need to be addressed to ensure a stable and robust housing market.
The detailed report and data from the RBI provide a granular view of the housing market, offering insights into the factors influencing price movements and the overall economic conditions in each city.
This information is essential for stakeholders to make strategic decisions and plan for the future.
Frequently Asked Questions
What is the All-India House Price Index (HPI)?
The All-India House Price Index (HPI) is a statistical measure that tracks the average movement of residential property prices across major cities in India. It is calculated by the Reserve Bank of India (RBI) based on transaction-level data from registration authorities.
How much did the HPI grow in Q3 of 2024-25?
The HPI grew by 3.1% in the third quarter of 2024-25, according to the RBI's data.
Which city had the highest annual HPI growth?
Kolkata recorded the highest annual HPI growth at 8.1%.
What cities are included in the RBI's HPI report?
The cities included in the RBI's HPI report are Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.
Why is the HPI important for the real estate sector?
The HPI is important for the real estate sector as it helps policymakers, developers, and investors understand market trends and make informed decisions. It provides insights into property price movements and overall economic conditions in major cities.
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