Home prices rise in 12 cities despite weak growth: survey

Home prices rose in nearly half of 26 cities in the three months to September, a report from a state-run bank showed on Thursday, indicating investors' confidence in the sector despite weak economic growth.

The figure compares with price rises in only four cities in the previous quarter from April to June.

Home prices in large Indian cities have continued to set records, unaffected by the weakest economic growth in years and by several interest rate rises by the central bank as it battles accelerating inflation.

Deals are being struck as bank interest rates and home prices are not expected to fall in the near future and as sellers are offering good deals, said R V Verma, chairman and managing director at the National Housing Bank, which tracks residential prices in 26 cities.

The latest data showed prices in the largest cities rose or remained steady despite many investors holding back their buying decision in anticipation of discounts from sellers.

Home prices in 12 cities including Mumbai, Kolkata, Chennai, Hyderabad, Ahmedabad, Chandigarh and Patna rose between 0.5 per cent and 5.3 per cent in the July-September quarter over the previous three months, the National Housing Bank report said.

Prices declined in 10 cities on a quarterly basis, including by 4.53 per cent in the capital New Delhi, while they remained steady in Pune, Kochi, Coimbatore and Dehradun, the report said.

"The sellers are offering discounts in the national capital region and a few other cities to clear their inventories," Mr Verma said.

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