On the Homebuying Craze in India

Original Data Source: NHB Residex

Consolidating over 50 cities covered in NHB’s Residex during 2013Q1-2021 Q1

Average House Price Appreciation = 4.5%

  • Average House Price Appreciation (excluding the pandemic quarters)= 5.0%
  • Average House Price Appreciation (during the pandemic quarters)= 2.0%

During the same time period

  • The stock market offered an average return of nearly 13%
  • Average yield on long-term (10-Year) Treasury Securities were 7.3%

Some Stylized facts

  • Major cities in the NCR region have lost 1-2% value per year.
  • Several cities witnessed years of steep annual fall in value (10%+)

Average Y-0-Y house price returns in some selected markets:

House Price Y-o-Y Appreciation in major Cities of India (2014-Q1 thru 2021 Q1)
AverageStDevMinMax
Hyderabad8.7%4.9%0.9%18.7%
Ranchi7.8%9.5%-9.7%25.9%
Patna7.4%5.4%-0.9%18.6%
Vizag7.3%4.1%0.6%17.4%
Ahmedabad7.3%7.2%-3.4%17.3%
Thiruvananthapuram7.2%6.7%-6.6%17.1%
Kochi6.9%4.7%-3.3%15.6%
Guwahati6.8%6.4%-4.7%18.2%
Pune6.2%3.0%-0.4%10.8%
Bengaluru6.1%4.6%-2.6%11.5%
Kanpur6.1%7.5%-6.9%20.4%
Surat6.0%4.1%-4.5%13.0%
Mumbai5.3%3.5%-4.6%12.0%
Indore5.0%3.4%-1.6%10.2%
Kolkata4.9%3.9%-4.7%13.3%
Lucknow4.5%4.5%-2.5%13.0%
Bhubaneswar4.1%4.4%-3.1%12.0%
Vijayawada3.9%5.3%-3.8%12.8%
Chennai3.9%3.9%-3.3%11.3%
Greater Noida3.6%3.0%-0.8%9.6%
Navi Mumbai3.5%6.6%-6.6%18.2%
Raipur3.3%4.7%-5.7%14.5%
Dehradun3.0%5.3%-12.2%13.5%
Coimbatore2.9%7.5%-12.1%17.9%
Bhopal2.3%2.9%-2.5%7.8%
Chandigarh (Tricity)1.8%4.5%-8.6%7.9%
Jaipur1.8%7.6%-14.1%14.1%
Noida1.6%6.1%-11.5%13.7%
Faridabad-0.6%5.7%-11.6%8.4%
Gurugram-0.8%6.0%-16.2%6.4%
Delhi-1.7%9.8%-20.7%19.4%
ALL4.5%-24.8%28.4%

Data Source: NHB Residex

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