MUMBAI: Despite weak home sales in many cities, prices continued to rise in 16 property markets including Delhi, Bangalore, Chennai, Pune and Hyderabad in the quarter ended December, according to the National Housing Bank's housing prices index, NHB Residex.
Prices in Mumbai, India's most expensive property market, remained stagnant, NHB said in a release.
The highest rise of 8% was in Nagpur, followed by Guwahati, Pune and Surat that saw prices rising 6-7% higher, according to the index that tracks pricing trends across 26 cities. The lowest rise of around 1% was seen in Bhopal, Raipur and Dehradun.
"Demand is firm in tier II and tier III cities. Robust and sustained credit flow is also supporting this well. These markets are not investors' markets, but are driven by end users and this is making prices remain on an uptick," said RV Verma, chairman and managing director, National Housing Bank.
Prices showed a declining trend in eight cities with the maximum drop in Vijayawada at 3.6%. This was followed by Lucknow, Meerut, Coimbatore, Jaipur and Chandigarh, where prices fell 2-3%. Prices fell 1% in Kolkata and Kochi.
NHB Residex has been tracking home prices on a quarterly basis since 2007.
Property sales have been sluggish over the last two years owing to high prices and interest rates amid an economic slump, forcing prospective home buyers to postpone their decisions and adding to inventory levels.