Howrah Dominates Property Price Decline in Q1 FY26
The residential real estate scene in India saw mixed results in the first quarter of FY26. Howrah stood out with the steepest property price drop. According to the latest NHB RESIDEX data from the National Housing Bank, Howrah recorded a major 6.1% fall in property prices, making it the most negative among the 50 cities surveyed.
Market Performance Overview
While most Indian cities grew, the National Housing Bank's detailed analysis showed different trends across various markets. The 50-city Housing Price Index showed an overall annual rise of 5.7%, but five cities defied this positive trend.
Cities Recording Decline
- Howrah: 6.1% drop (maximum)
- Kochi: 5.5% drop
- Thiruvananthapuram: 4.8% drop
This data, based on property valuations from banks and housing finance companies, shows Howrah's tough market conditions during April-June 2025.
Broader Market Context
The contrasting performance becomes clearer when comparing Howrah's drop with cities that saw strong growth. Bengaluru led with 9.1% growth, followed by Chennai at 7% and Ahmedabad at 6.8%. Mumbai, Pune, and Kolkata also recorded healthy increases.
Investment Implications
For potential investors and homebuyers, Howrah's decline presents both challenges and opportunities. The 6.1% drop might signal a market correction or local factors affecting demand. However, declining prices could attract value-seeking investors looking for entry points.
The quarter-on-quarter analysis shows the 50-city index expanded by 0.5%, maintaining an upward trend since September 2021. Additionally, home loan interest rates dropped by 100 basis points in February 2025, potentially supporting future market recovery.