India: House Price Inflation at 42 Month Low

House price inflation dropped to a 14-quarter (42 Month) low of 3.6% in Q3 FY15 (2014 October to December) due to lower end-user demand and rising inventory.

House price inflation dropped to a 14-quarter (42 Month) low of 3.6% in Q3 FY15 due to lower end-user demand & rising inventory.


House price inflation, as measured by the annual growth in the Residential Property Price Index (RPPI), peaked in the 3 months to December 2013 and has been declining since then, Reserve Bank of India (RBI) data show.

Moreover, the annual growth in housing price index & CPI-Housing Rent Index has been similar over the last 7 quarters ( 21 Months).


Banks / housing finance companies (HFCs) have become cautious in sanctioning housing loans as data show a decreasing trend in median loan-to-value (LTV).

Meanwhile, as housing & gold prices tumbled, growth in equity (share) prices picked up.


Src: FE Bureau, RBI, 
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