FCC

Housing prices stay fairly flat at 2.7%, growth to be in same range in FY22

2021-06-24

Housing prices appeared to be recovering in the Q4 of FY21 as the economy emerged gradually from the pandemic. Growth of 2.7% in the RBI HPI looked like a stepping-stone in the upward direction as it rose from 1.1% in Q2 to 2.2% in Q3 of the year, according to a report by CARE Ratings. However, the second wave in April has disrupted the sector as it has affected livelihoods and spending power as well as diverted attention to health for majority of households. While there can be some pent-up demand emerging during the year, the impact on prices in FY22 would tend to be moderated. A concern here is the spike in global commodity prices which has been witnessed even in India.