Prices of residential properties have shown a mixed trend in 15 Indian cities covered under the NHB Residex, for the quarter January-March 2011. Prices in three cities have shown an increasing trend over the previous quarter (October-December 2010), while those in seven cities have faced a correction. Prices have remained steady in five cities save for an increase or a decrease of a percentage point.

Pune saw the maximum increase at 5.02%. The other two cities showing increasing trend in prices are Lucknow at 3.09% and Delhi at 2.64%.
Among the cities that witnessed a correction, the sharpest was recorded by Bangalore at 17.6%, followed by Kochi at 14.92%. Faridabad was next at 6.37% and Hyderabad 4.6%. Surat, Bhopal and Jaipur had price corrections of 3.76%, 3.55% and 2.63% respectively.

Ahmedabad, Chennai and Mumbai saw marginal increase; Kolkata, a marginal decrease; while prices in Patna remained unchanged over the previous quarter. This is as per quarterly figures were released with NHB’s Report on Trend and Progress of Housing in India for the year 2010. Experts attribute the fall in prices to a slowdown in housing demand as a result of high property prices and rising interest rates.

Age and earning profile could also possibly be one of the factors for fall in prices, particularly in cities such as Bangalore where there is more demand from the younger generation who could postpone their decision to buy a house.