By Accommodation Times News Services
Last five quarters of housing index till March 2014 witnessed a decline in the pace of price rise as it came down to around 10 per cent with the slowest being 10.5 per cent in the festive season last year between October and December 2013, said Reserve Bank of India (RBI) in its quarterly house price index (HPI) compiled by them for 10 major cities over the last four years based on actual registered transactions.
The Reserve Bank is compiling a quarterly house price index (base 2010-11=100) for cities like Mumbai, Delhi, Chennai, Kolkata, Bangalore, Lucknow, Ahmedabad, Jaipur, Kanpur and Kochi.
The release notified that the prices have been constantly rising though the pace of rise has declined over the last one year, growth in 2013-14 was at 12.7 per cent, plausibly reflecting a correction in trends, on the back of subdued demand.
RBI said the growth in house prices had moderated in 2013-14 for Mumbai, Delhi, Kolkata, Jaipur and Kanpur. For instance, the price in Mumbai rose on an average annual basis by 30 and 18.5 per cent, respectively, for 2011-12 and 2012-13. This declined to 8.7 per cent in 2013-14.
However, in Bangalore and Ahmedabad, house prices grew at a relatively slower pace during 2012-13 but picked up momentum in 2013-14. Kolkata and Delhi picked up momentum in 2012-13 and then showed some moderation in 2013-14.
Prices in the small size category have gone up at an average annual of 23.7 per cent in the past four years. The average increase has been lower for the medium and large categories at 18.2 and 18.6 per cent, respectively. In 2013-14, the price increase in the small and medium size category moderated to 8.7 and 10.7 per cent, respectively, while that in the large size category remained almost at the average level.