India’s house price growth slowed to 3.6 per cent year-on-year in the first quarter of FY27, from 4.5 per cent in the previous quarter, indicating a moderation in the pace of residential property price increases, according to Reserve Bank of India (RBI) data released this week.The RBI’s All-India House Price Index (HPI) rose to 117.5 in Q1 FY27, from 116.2 in Q4 FY26 and 113.4 in the year-ago quarter. On a quarter-on-quarter basis, the index increased 1.1 per cent.While prices continued to rise, the slower annual growth suggests that the sharp momentum seen in some housing markets has eased. The RBI said the latest annual growth was mainly contributed by Chandigarh, Jaipur, Kanpur, Lucknow and Thiruvananthapuram.“The HPI registered an annual growth of 3.6 per cent in Q1:2026-27, same as in Q1 of previous year, mainly contributed by the cities such as Chandigarh, Jaipur, Kanpur, Lucknow and Thiruvananthapuram,” the RBI said.

Why did house price growth slow?

The moderation in the overall index came despite continued quarterly gains in several cities. The RBI said the 1.1 per cent quarter-on-quarter increase was primarily driven by Chandigarh, Lucknow and Thiruvananthapuram.

“The All India HPI increased by 1.1 per cent and stood at 117.5 in Q1:2026-27 compared to previous quarter, primarily driven by an increase in the index for cities such as Chandigarh, Lucknow, and Thiruvananthapuram,” the central bank said.The data therefore points to a mixed housing market, with prices continuing to move higher but the pace of annual appreciation remaining modest. The 3.6% annual growth in Q1 FY27 was also unchanged from the corresponding quarter of FY26.The HPI is compiled quarterly using transaction-level data from property registration authorities. With 2022-23 as the base year, the latest index covers 18 major cities, including Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Hyderabad, Pune, Ahmedabad and Gurugram-region markets such as Ghaziabad and Gautam Buddha Nagar.The index tracks movements in residential property prices based on registered housing transactions across these cities and provides a broad indicator of the direction of India’s housing market.