Property investors should note that despite the Covid-19 shocks, property prices in cities like Ahmedabad, Hyderabad, Gandhinagar and Ranchi continued to increase. “During the first COVID-19 wave, the housing prices increased in cities such as Gandhinagar, Ahmedabad, Hyderabad, Thane, Mumbai, Kolkata, Pune and Bengaluru over the pre-pandemic level. Similar trends were also visible during the second COVID-19 wave over the pre-pandemic level. The housing prices in cities such as Ahmedabad, Hyderabad, Gandhinagar and Ranchi continued to increase despite the COVID-19 shocks,” stated the Economic Survey 2021-2022.

The Economic Survey has used the change in NHB RESIDEX price index during the first covid-19 wave and during the second covid-19 wave over the pre-pandemic level. NHB RESIDEX tracks the movement in prices of residential properties in select cities on a quarterly basis.

According to the survey, Gandhinagar saw housing prices increase by 18.3% during the first wave (April-June 2020). During the second wave (April-June 2021), housing prices in Gandhinagar rose by 25.8%.

In the case of Ahmedabad, housing prices increased by 16.5% during the first covid-19 wave and further rose by 28.9% during the second wave. Hyderbad also saw a similar trend in the increase of housing prices during the first and second wave of covid-19.

In Mumbai property prices increased by 6.7% during the first covid-19 wave, and did not change during the second wave.

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However, the survey did note that the impact of the COVID-19 shock on the prices of residential properties was not uniform across the cities. According to the survey, the housing prices decreased in Delhi, Noida and Ranchi. Delhi and Noida saw a decline in housing prices during both the covid waves.

In Delhi, housing prices fell by 4.2% during the first wave and by 3.1% during the second wave. In the case of Noida, the decline in housing prices was even sharper. The city saw a decline of 8.5% during the first wave and dipped a further 6% during the second wave.

Pune and Bengaluru saw small hike in the housing prices. As per the data, Pune saw a hike of 3.7% during the first wave and 5.6% during the second wave of covid-19. Bengaluru city saw the hike of 5.3% during the first wave and 2.7% in the second wave of covid-19.

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