Data source: RBI - Macroeconomic and Monetary Development

The recent cut in interest rates by the RBI is expected to bring down borrowing rates for home buyers. Plus the same may eventually boost housing demand as well as prices. But if one looks at the data published by the RBI on rise in house prices in the metros, one gets the impression that house prices in these areas have gone up significantly irrespective of home loan rates. Considering the quarter of January to March 2009 as base, house prices in Mumbai and Delhi are up almost 132% and 125% respectively. While Mumbai continues to remain more expensive, the ascent has been much faster in Delhi.