SDG 9: Industry, Innovation, and Infrastructure | SDG 11: Sustainable Cities and Communities
Institutions: Reserve Bank of India (RBI) | Ministry of Finance
The Reserve Bank of India (RBI) has released the All-India House Price Index (HPI) for Q2:2025-26 (base year 2022-23), revealing a notable slowdown in the residential housing market. The All-India HPI recorded an annual growth (Y-o-Y) of only 2.2% in the current quarter, a sharp deceleration compared to the 7.0% growth registered in the corresponding quarter of the previous year.
On a sequential basis (Q-o-Q), the All-India HPI registered a decline of 0.6% (from 113.4 to 112.7). This index drop was significantly driven by a decrease in house prices in major metropolitan centers, specifically Kolkata, Chennai, and Lucknow. Conversely, the modest positive annual growth was sustained primarily by rising prices in emerging urban markets, including Nagpur, Ghaziabad, and Chandigarh.
Policy Relevance
The sharp deceleration in the HPI suggests a cooling or consolidation phase in the urban housing sector, reducing immediate financial stability risks often associated with asset price bubbles. However, the marked divergence in trends—where major Tier-1 cities drive the sequential decline while Tier-2 centers provide the only sustained annual growth—underscores the need for financial institutions and the RBI to adopt granular, city-specific macroprudential policies that account for regional heterogeneity in housing demand and price momentum.
What is the All-India House Price Index (HPI)?→ The All-India HPI is a composite index compiled quarterly by the RBI, based on transaction-level data received from registration authorities across 18 major Indian cities. It serves as a vital macroeconomic indicator, reflecting inflation in the residential housing sector and aiding policymakers in assessing financial stability risks associated with the real estate market.
Follow the full news here: All-India House Price Index (HPI) Q2:2025-26