Increased variations in prices of property in India

The latest figures from the
National Housing Bank in India showed that property prices in seven major
cities fell in the first quarter of 2011. 
However, there was some regional variation to the figures with prices
rising in other parts of the country.

Prices of property in seven
Indian cities fell by between 2.6 and 17.6 per cent between January and March
2011 whilst three cities saw property prices rise by between 2.6 and 5 per
cent.

Property prices risen year on year in all15 major Indian cities

While some property prices fell
in the first quarter of 2011, NHB’s residential housing price index showed that
year-on-year, property prices have increased in all 15 cities covered under the
index.

The falls are in contrast to the
previous quarters’ figures. Between October and December 2010, property prices
went up in 13 out of the 15 cities surveyed, compared with the previous
quarter.

The Business Standard reports that ‘when asked about the possible range
of property price correction in the coming months, NHB chairman RV Verma
refused to provide a figure.

“We can’t hazard any guess on
property price correction as it may impact the market,” Verma said at a press
conference to discuss the trends in the housing sector. He added: “There are
blips in the property market.”’ 
However, Verma believes that an oversupply of property means that a
correction in prices of property in India is set to occur.

Regional variations in Indian house prices

The seven cities that saw a fall
in property prices in the first quarter of 2011 are Kochi, Faridabad,
Hyderabad, Surat, Bhopal, Jaipur and Bangalore, which saw the biggest falls of
17.6 per cent.

Some cities did experience an
upturn in property prices. 
Ahmedabad showed an increase of 0.4 per cent, whilst prices of property
in Mumbai rose by 1.39 per cent.  Pune
saw a more significant 5.02 per cent increase whilst prices in Lucknow and
Delhi rose by 3.09 per cent and 2.64 per cent respectively.