New Delhi, Oct 9
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.
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.