Reports state, housing prices across top 39 cities of India have shown signs of recovery, according to the National Housing Bank's housing price index NHB RESIDEX.

The rise in prices is in continuation of the previous quarter's up-trend. The Housing Price Index for under-construction properties recorded an overall year-on-year increase in 39 cities, decrease in 10 cities and no change in one city. All the top eight property markets of the country, except Pune, showed growth on annual basis in March quarter. Residential prices increased by 3.8% in Mumbai while Pune witnessed a decline in prices by 1.4%, from a year ago.

A marginalannual decrease was witnessed in Vasai-Virar property market at 0.9% and Nashik at 0.8%.

Our Take

Residential property prices in Q1 2018 remained largely range-bound. As per reports, housing sales increased by a significant number during the January-March quarter over the previous quarter on better demand from end-customers.

The positive consumer sentiment was driven by strong market confidence in the wake of real estate sector reforms in 2017. Demonetization, implementation of the real estate regulatory law, RERA and GST during the last year influenced demand and supply.

Sale numbers have improved after a continuous drop for the last four years and therefore raises hopes of a revival in the market. There has been a reported increase in the new supply of residential properties thereby leading to a marginal decrease in unsold inventory.

Source