House price inflation in India slowed to the lowest in almost four years in the final three months of 2014, according to data compiled by the Reserve Bank of India.
The All-India Residential Property Price Index, which tracks property prices in 13 cities in the South Asian nation, increased less than 4 percent in the December quarter from the previous year, the lowest since the June quarter of 2011, the RBI said Thursday. The pace of annual gains peaked at 28 percent in three months to Dec. 31, 2012.
Annual growth in residential property prices in India has been contracting along with other Asian countries including China, Indonesia and Malaysia, while it has been rising in the U.S. and U.K., the RBI said.
House prices in Mumbai fell by more than 3 percent in the December quarter from the year before. In the National Capital Region, the area around New Delhi, prices climbed about 3 percent in the same period, the RBI data showed.
Lenders are becoming more cautious about financing apartment purchases amid the slowdown in house price inflation, the central bank said, noting that banks are bringing down the loan-to-value ratio in mortgages. The ratio represents the percentage value of an apartment that the bank may lend to customers.