All-India House Price Index up 3.6 pc in Q1 FY26: RBI
The Reserve Bank of India (RBI) on Thursday said that all-India House Price Index (HPI) based on transaction-level data of 18 major cities increased by 3.6 per cent (on-year) in the first quarter of the current fiscal (Q1 FY26).
The value of house price index registered a marginal increase in Q1 2025-26, with Nagpur, Chandigarh, Chennai and Kochi registering maximum increase over the last quarter.
“All-India HPI increased by 3.6 per cent in Q1 2025-26 as compared to 7.6 per cent growth in the corresponding quarter of the previous year. On a sequential (QoQ) basis, all-India HPI increased by 2.0 per cent in Q1 2025-26,” the Central Bank said in a statement.
The central bank released its HPI for Q1 2025-26 with a new base year of 2022-23. The earlier base year was 2010-11.
The RBI compiles the HPI on quarterly basis based on transaction-level data received from the registration authorities.
The new base year as 2022-23 covers 18 major cities. Eight new cities -- Hyderabad, Thiruvananthapuram, Pune, Ghaziabad, Thane, Gautam Buddha Nagar, Chandigarh and Nagpur, have been added to existing 10 cities in the new series with base year 2022-23.
“House is not just an asset but also a durable consumption good for households, providing shelter and other services. A change in the house price affects the households’ perceived lifetime wealth and hence influences the spending and borrowing decisions of households,” according to Central Bank.
An increase in the house price raises the value of the housing relative to construction costs; hence a new construction is profitable when house price rises above the construction costs.
Residential investment is, therefore, positively related with house price increase. House prices also affect bank lending and vice versa. Further, house price gains increase housing collateral.
