Indias House Price Growth Slows to 3.6 in Q1 FY27: RBI

India’s house-price growth slowed to 3.6% year-on-year in the first quarter of FY27, down from 4.5% in the previous quarter, according to the Reserve Bank of India’s latest House Price Index data released on August 24.

The moderation suggests that residential property prices continued to rise through the June quarter, but at a slower annual pace than they did in the previous three months.

The RBI’s All-India House Price Index stood at 117.5 in Q1 FY27, compared with 116.2 in the fourth quarter of FY26 and 113.4 in the year-ago quarter. On a quarter-on-quarter basis, the index increased 1.1%.

The central bank said the annual growth of 3.6% was mainly supported by cities including Chandigarh, Jaipur, Kanpur, Lucknow and Thiruvananthapuram. Chandigarh, Lucknow and Thiruvananthapuram were among the cities that drove the quarterly increase in the index.

Annual growth slows, but prices are still rising

The latest numbers show two different trends in the housing market.

Compared with a year earlier, price growth has moderated. The 3.6% annual increase in Q1 FY27 was lower than the 4.5% recorded in the preceding quarter.

But the index still rose 1.1% between March and June. That means the slowdown should not be read as a fall in house prices nationally. Rather, the pace at which prices are increasing has eased.

The annual growth rate was also the same as that recorded in the corresponding quarter of the previous financial year, according to the RBI data.

For homebuyers, that distinction matters. A slowdown in price growth can improve affordability at the margin if incomes rise faster than property prices, but it does not mean homes have become cheaper.

What the RBI index measures

The RBI compiles its House Price Index every quarter using transaction-level data received from property registration authorities.

The latest index uses 2022-23 as its base year and covers 18 major cities: Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur, Kanpur, Kochi, Hyderabad, Thiruvananthapuram, Pune, Ghaziabad, Thane, Gautam Buddha Nagar, Chandigarh and Nagpur.

Because the index is based on registered housing transactions, it provides an indication of actual movements in residential property prices across those markets rather than simply tracking asking prices.

That also means the figures represent the cities and transactions covered by the index, rather than every housing market in India.

The takeaway for homebuyers

The June-quarter data points to a housing market that is still seeing price appreciation, but without the faster annual growth recorded in the previous quarter.

For buyers, the numbers offer neither a clear signal of a nationwide price correction nor evidence of another sharp acceleration. Instead, the latest RBI reading points to a more measured pace of price growth.

That could become important if the trend continues. Home affordability depends not only on property prices but also on borrowing costs, household incomes and the availability of homes in the locations buyers want.

For now, the RBI data shows that Indian residential property prices continued to move higher in Q1 FY27, even as the pace of annual growth moderated.

The next quarterly reading will show whether the June-quarter slowdown was temporary or the beginning of a longer period of more moderate house-price growth.

Source: https://economictimes.indiatimes.com/markets/digital-real-estate/realty-news/indias-house-price-growth-slows-to-3-6-in-q1-fy27-rbi/articleshow/133472740.cms