By 2017, the Reserve Bank of India's House Price Index fell to 3.5 per cent and 2.0 per cent in Mumbai and Delhi respectively.
Is a collapse in house prices a possibility?
In the previous section we had focused on the visible signs of excess supply in the housing market. High prices had begun to curb demand, even while a range of factors increased supply. But matters began to change when factors such as rising non-performing assets in the banking system began to slow credit growth.
Know more about the housing market scenario in the country in this episode of Money Matters.