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House price index records annual growth of 1.8% in Q4 of FY22: RBI data

The rise in the key index was slower compared to the January-March quarter of the preceding fiscal when it had recorded an increase of 2.7 percent.

Representative image.

Representative image.

The All India House Price Index (HPI) recorded a growth of 1.8 percent in the fourth quarter of FY22 on an annual basis, according to data released by the Reserve Bank of India.

However, the rise in the key index was slower compared to the January-March quarter of the preceding fiscal when it had recorded an increase of 2.7 percent.

All India HPI recorded an annual growth (y-o-y) of 1.8 percent in Q4 of 2021-22 as compared to 3.1 percent in the previous quarter and 2.7 percent a year ago, the data showed.

The y-o-y movements in HPI varied widely across the cities - ranging from a growth of 19.2 percent (Kolkata) to a contraction of 11.3 percent (Bengaluru), it said.

The RBI releases its quarterly house price index based on transaction-level data received from housing registration authorities in 10 major cities -- Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow, and Mumbai.

On a sequential (quarter-on-quarter) basis, the all India HPI registered a contraction of 1.1 percent in Q4 of 2021-22.

India's GDP is estimated to have grown by 8.7 percent in FY22 after growth slid to 4.1 percent in the January-March quarter (Q4FY22), data released on May 31 by the Ministry of Statistics and Programme Implementation showed.

Growth likely slowed down in the first quarter of the calendar year 2022 because of the hit to activity from the Omicron variant-led third COVID-19 wave and the Russia-Ukraine war.

Construction growth registered at 11.5 percent and financial, real estate and professional services registered a growth of 4.2 percent.

Commenting on the GDP data, Niranjan Hiranandani, MD, Hiranandani Group and Naredco vice chairman, said, “Any hike in interest rates will negatively impact the growth pattern, and this needs to be prevented to sustain and spur economic growth. Consumption growth needs to be incentivised.”

Persistent high inflation has cast its shadow on business, investment, and consumer sentiment. “In line with the effect of global unrest, it was crucial for emerging economies like India to ensure a steady GDP growth curve, with fiscal stimulus and no more monetary tightening. This would ensure sustainable liquidity supply promoting growth velocity. The Indian economy needs an inclusive, sustainable, and balanced growth framework,” he added.

“Global spillovers of supply shortages, crude oil shock and higher input costs thwarted India’s growth momentum in 4Q FY22. The impact of these factors was widely witnessed in high-frequency mining, manufacturing, and construction indicators.  So far in FY23, recovery in India’s domestic macros have been resilient to risks arising from global developments; however, supply-side challenges and inflation spikes, which could dampen consumption and investments in the economy, poses near term risk to India’s economic growth," said Vivek Rathi, Director - Research, Knight Frank India.

first published: May 31, 2022 10:10 pm